Ethereum's Exciting ETF Journey Begins with a Slow Start
Ethereum's new trading tool starts slowly, not earning as much as hoped on day one, while many keep a hopeful eye on future gains.
Ethereum, a popular digital currency, just got a new trading tool called Ethereum futures exchange-traded fund (ETF). But, the first day did not go as hoped, with trading bringing in less than $3 million. Many expected it to do as well as Bitcoin’s trading tool did last year.
The US Securities and Exchange Commission (SEC),allowed nine ETFs to start on the same day. They did this to prevent one product from controlling the market. Bloomberg’s expert, Eric Balchunas, shared, “No clear winner has emerged, all were quite average.”
Even though the start was not as big as expected, many people still believe the ETFs will do well in the next weeks. Some think that investors might need more time to get used to the new Ethereum ETFs because they prefer to hold actual Ethereum coins rather than future promises of them.
Valkyrie’s Bitcoin Strategy ETF showed a little more action than the others, with over $800,000 in activity. It has adjusted its setup to include ETH to make the most of its growing popularity. Some ETFs track only ETH futures, while others track both Bitcoin and ETH futures.
Some experts are careful because they think that futures ETFs could pull demand away from the actual cryptocurrency market and negatively impact regular market prices. After the ETFs were launched, Bitcoin and ETH values fell a bit, and the global market shrank by nearly 4%.
Last year, when Bitcoin futures ETFs started, they had huge trading volumes. The ProShares Bitcoin Strategy ETF even saw $1 billion in volume, helping Bitcoin reach new price highs and drawing more big investors to it. Now, eyes are on the Ethereum futures ETFs to see how they will perform in the coming weeks.
