Ethereum Futures ETF: Less Fireworks, More Crickets — What Went Wrong?

Ether Futures ETF's debut was a major fail
Ether Futures ETF’s debut was a major fail

In the ever-exciting world of cryptocurrency, sometimes we expect rocket launches, but we end up with something more like a balloon floating away slowly. Case in point: the Ethereum Futures Exchange Traded Fund (ETF) debut. Multiple versions of this highly-anticipated product went live on a Monday, and let’s just say it was more of a “meh” moment than a “wow” moment. So, what happened? Let’s dive into the reasons behind this…

You might also be interested: Mastercard’s New Forum: Facilitating Collaboration on CBDC

Slow and Steady Wins the Race?

Picture this: the debut of Ethereum Futures ETFs, and instead of a roar of excitement, we got… 

Yeah kinda
Yeah kinda

According to Eric Balchunas, a senior ETF analyst for Bloomberg, the total trading volume for these ETFs on day one barely touched the $2 million mark. Sure, it’s not unusual for new ETFs to start slow, but when you compare it to the wild opening of the first-ever Bitcoin Futures ETF, which racked up over $200 million in just 15 minutes, it feels a bit like the tortoise competing against the hare.

The Ethereum Derby: A Neck-and-Neck Race

Now, imagine a thrilling race between two Ethereum ETF contenders: VanEck and ProShares. You’d expect sparks to fly and the competition to heat up, right? Well, think again. Both contenders struggled to gain significant traction in terms of trading volume. ProShares’ Ethereum Futures ETF had a trading volume that looked more like pocket change, clocking in at a modest $284,112. It seems the horses in this race may have taken a leisurely stroll instead of sprinting to the finish line.

When Bitcoin Steals the Spotlight

In the cryptocurrency world, it’s a bit like high school — Bitcoin always seems to steal the spotlight. Even though Ethereum is a big deal, Bitcoin’s debut as a Futures ETF garnered all the attention. Valkyrie managed to capture the highest trading volume among the ETFs, reaching approximately $787,376. While it’s promising, it’s still a far cry from the madness surrounding the Bitcoin Futures ETF launch.

Spot ETFs: The Holy Grail

One possible reason behind the not-so-stellar debut of Ethereum Futures ETFs is the cry for something more thrilling: spot ETFs for Bitcoin and Ethereum. Think of spot ETFs as the real rock stars of the crypto world — they’re the headliners everyone wants to see. While the SEC has shown some love for futures-based products, it’s the spot ETFs that truly get the crowd going.

With spot ETF applications piled up at the SEC’s doorstep and industry insiders, legal victories, and lawmakers all chanting “Spot ETF now!” like a catchy chorus, the regulator is under immense pressure. Spot ETFs are the golden ticket to mainstream crypto adoption, and their absence may have dimmed the spotlight on their futures-based cousins.

The Waiting Game Continues

In the end, the crypto world is still holding its breath, waiting for the grand entrance of spot ETFs for Bitcoin and Ethereum. Until then, we’ll have to make do with futures-based ETFs, even if their initial trading volumes were a bit more yawn-inducing than we’d hoped for.

So, in the world of crypto, sometimes it’s not all fireworks and confetti. It’s more like a polite golf clap with a side of crickets. But fear not, the day of the spot ETFs may soon dawn, and we’ll look back on this launch and chuckle at the “meh” moment that started it all.

About the author

Without deep knowledge and sincere interest, it isn't easy to succeed in any business. For 6 years in the crypto industry, I have achieved both points, and now I am willing to share my knowledge with enthusiasts. The crypto industry is about constant development. Prospects in crypto attract more and more people who, despite a certain amount of prejudice, are ready to become experts in the top-notch niche, and I am ready to help them.