Ethereum Futures ETF To Launch On Oct 12, Will ETH Echo BTC’s 2021 Surge?

1 year ago

The crypto abstraction is connected the verge of different perchance historical infinitesimal with the archetypal Ethereum Futures ETF successful the US. Volatility Shares, a pioneer successful the ETF space, has announced its volition to motorboat the Ether Strategy ETF (Ticker: ETHU) connected October 12, 2023. If each goes arsenic planned, this could people the archetypal Ether based speech traded money (ETF) successful the United States.

First Ethereum Futures ETF Is Set To Launch In The US

Volatility Shares has positioned the ETF astir cash-settled Ethereum futures contracts trading connected the CBOE. Notably, the ETF avoids nonstop concern successful Ether itself. “The Fund is an exchange-traded money that seeks to execute its concern nonsubjective by investing its assets principally successful cash-settled contracts referencing Ether… The Fund does not put straight successful Ether,” reads the SEC filing.

Stuart Barton, the CIO of Volatility Shares, voiced his optimism, saying, “Volatility Shares successfully launched the archetypal 2x Bitcoin-linked ETF (BITX) successful July and believes that ETHU is the adjacent logical measurement earlier turning our forces to spot markets.”

Eric Balchunas, elder ETF Analyst for Bloomberg, weighed in connected the audacity of Volatility Shares’ assertive timeline: “VolatilityShares announcing they mean to database their Ether Futures ETF connected Oct 12th (which would beryllium a time oregon 2 up of the remainder of battalion (if the 75 days is adhered to).. they did aforesaid happening w $BITX”.

When prompted connected the likelihood of SEC’s approval, helium remarked, “Well, there’s been nary withdrawals truthful SEC looks to beryllium good with them … he’s astir apt conscionable pushing the envelope similar helium did w BITX”.

While Volatility Shares leads the pack, they’re not unsocial successful this pursuit. A full of 13 heavyweight fiscal institutions, including names similar Bitwise, VanEck, Vakyrie, Roubhill, ProShares, and Grayscale, person sought the US SEC’s blessings for their Ether Futures ETFs. However, arsenic of now, the SEC hasn’t fixed its greenish awesome to any.

Will Ether Echo BTC’s 2021 Surge?

Remarkably, the archetypal Bitcoin futures ETF successful the US was launched backmost connected October 19, 2021. At that time, ProShares won the contention for the archetypal mover effect. And this has paid off. The full assets successful Bitcoin futures ETFs accounts to $1.3 billion. Of that, astir $1.1 cardinal is successful the ProShares Bitcoin Strategy ETF (BITO). The 2nd largest ETF is the ProShares Short Bitcoin Strategy ETF with $73 million. No different ETF has much than $50 cardinal successful assets nether management.

When the archetypal Bitcoin futures ETF was launched, BTC was successful the midst of the 2021 bull run. In the run-up to the futures ETF launch, BTC enactment connected a 60% rally from Oct. 1 to Oct. 19, rising 60% to $66,970. In the adjacent 7 consequent days, BTC saw a correction of astir 14% earlier Bitcoin continued its rally to the all-time precocious adjacent $69,000.

Whether the ETH terms volition acquisition a akin euphoria arsenic Bitcoin successful 2021 remains to beryllium seen. At slightest the situation is different. While BTC was successful a afloat blown bull market, the crypto marketplace is presently successful a signifier of stagnation, perchance earlier the commencement of a caller bull market. However, without a doubt, the archetypal Ethereum Futures ETF has the imaginable to beryllium a catalyst for the ETH price.

At the clip of writing, ETH was trading astatine $1,826, conscionable supra the cardinal enactment of the 38.2% Fibonacci retracement level.