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Lukewarm reception for Ethereum futures ETFs on debut trading day

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Lukewarm reception for Ethereum futures ETFs on debut trading day

Nine new Ethereum futures exchange-traded funds (ETFs) have been launched, but they have failed to attract significant investment. Out of these nine funds, only five are exclusively focused on Ether futures, while the other four include a mix of Bitcoin and ETH futures contracts. On the first day of trading, all nine ETFs collectively witnessed less than $2 million in trading volume. The most popular among them was Valkyrie’s BTF, which tracks both Bitcoin and Ether futures and generated $882,000 worth of volume. However, this trading volume pales in comparison to the ProShares Bitcoin Strategy ETF (BITO), which accumulated over $1 billion in trading volume on its first day.

Despite modest trading volumes, senior Bloomberg ETF analyst Eric Balchunas noted that the volume witnessed by these ETFs was relatively high compared to traditional finance ETF launches. It is important to note that investors generally prefer spot ETF products over futures. Balchunas explained that all nine ETFs were launched on the same day to prevent any one fund from dominating the market. Meanwhile, Volatility Shares canceled its plans to list a similar Ether futures ETF, stating that it did not see any current opportunities in the market.

In summary, the launch of nine new Ethereum futures ETFs did not result in substantial investment inflows. These ETFs saw less than $2 million in trading volume on their first day, with Valkyrie’s BTF being the most popular among them. While the trading volumes were higher than those of traditional finance ETF launches, investors tend to prefer spot ETF products rather than futures. Additionally, Volatility Shares decided to cancel its plans to list a similar ETF, citing a lack of opportunities at the present time.

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