Ether Futures ETF by ProShares, VanEck, and Bitwise Dominate with $1.92M

October 3, 2023 - Around 3 mins mins to read

Key Points:

ProShares, VanEck, and Bitwise have launched pioneering Ether futures ETF, marking a milestone in the crypto world.
In their first day of trading, these six ETFs collectively hit $1.92 million in trading volumes, with the ProShares Ether Strategy ETF standing out at $878,560.
Amid ongoing SEC deliberations on crypto ETFs, these futures-based products offer a unique investment avenue, backed by CFTC regulation.

Three prominent U.S. investment managers have broken new ground in the cryptocurrency market by launching the world’s first futures-based exchange-traded funds (Ether futures ETF) tied to the value of ether.

Ether Futures ETF by ProShares, VanEck, and Bitwise Dominate with $1.92M

ProShares, VanEck, and Bitwise Asset Management introduced a total of six innovative ETFs, offering investors a unique opportunity to take positions in exchange-traded products based on ether for the very first time. The debut of these funds marked a significant milestone in the rapidly evolving cryptocurrency landscape.

Ether futures ETF Debut with $1.92M Trading

In their inaugural trading day, these six ETFs collectively recorded impressive trading volumes, amounting to a substantial $1.92 million, as reported by data from LSEG. Notably, the ProShares Ether Strategy ETF (Ether futures ETF) emerged as the standout performer, with trading valued at an impressive $878,560.

The introduction of these futures-based products is a noteworthy development, considering that the U.S. Securities and Exchange Commission (SEC) is still deliberating whether to approve ETFs tied to the spot prices of bitcoin, and potentially, other cryptocurrencies like ether. The SEC’s hesitancy stems from concerns about the protection of investors from potential market manipulation, leading them to reject all spot bitcoin ETF applications thus far.

However, the ETFs linked to ether futures contracts regulated by the Commodity Futures Trading Commission (CFTC) have seemingly found favor with the SEC, representing a logical step forward for regulators and asset managers alike, according to Aisha Hunt, a principal at Kelley Hunt & Charles LLC, who specializes in advising clients within the ETF market.

Ether futures ETF Gain SEC Favor via CFTC Oversight

These ETFs arrive on the scene exactly two years after the groundbreaking launch of the ProShares Bitcoin Strategy ETF, which was the first ETF designed to track bitcoin futures. On its inaugural day of trading, this fund garnered immense attention, with trading valued at over $130 million.

Each of the six new ETFs offers a distinct strategy, structure, and cost. The ProShares Ether Strategy ETF, the VanEck Ethereum Strategy, and the Bitwise Ethereum Strategy ETF provide investors with direct exposure to ether futures contracts traded on the Chicago Mercantile Exchange. Meanwhile, the remaining three ETFs blend exposure to ether with bitcoin through various methodologies, catering to a broader spectrum of investment preferences.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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