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A clutch of ether futures ETFs have traded on the market for nearly a full week. Yet none have seen inflows anywhere near what their bitcoin futures predecessor reeled in.\u00a0<\/p>\n
The six ether futures ETFs launched by ProShares, VanEck and Bitwise on Monday held less than $20 million in combined assets after four days of trading.\u00a0<\/p>\n
The funds\u2019 lack of growth is stark when compared to demand for the first bitcoin futures ETF. The ProShares Bitcoin Strategy ETF (BITO) grew to $1 billion in assets in its first few days on the market in October 2021.\u00a0\u00a0\u00a0<\/p>\n
The VanEck<\/a> Ethereum Strategy ETF (EFUT) appears to be leading the asset race with $8 million. The ProShares Ether Strategy ETF (EETH) had roughly $6 million, while Bitwise\u2019s pure ethers futures fund \u2014 its Bitwise Ethereum Strategy ETF (AETH) had not yet reached $1 million in assets.\u00a0<\/p>\n Fund group Valkyrie<\/a> changed the name and investment strategy of its bitcoin futures fund on Tuesday. Now dubbed the Valkyrie Bitcoin and Ether Strategy ETF (BTF), that fund has seen zero net inflows this week, according to ETF.com.\u00a0\u00a0<\/p>\n The macroeconomic environment \u2014 including a federal funds rate that is currently at 5.33% \u2014 has contributed to an overall lower appetite in risk assets. Ether\u2019s (ETH<\/a>) price was at about $1,630 at 10:30 am ET on Friday \u2014 down roughly 2% from seven days ago.\u00a0\u00a0<\/p>\n \u201cWith the [Treasury] bill yield soaring above the ETH staking yield amidst lackluster on-chain activity, EFUT\u2019s number one position among ETH futures ETFs has been achieved at a relatively low AUM level so far,\u201d said Matthew Sigel, VanEck\u2019s head of digital assets research.\u00a0\u00a0<\/p>\n Industry watchers had kept an eye on Monday volumes in the six new ether futures ETFs, which totaled roughly $2 million in aggregate. BITO saw $1 billion in volume on its first day.<\/p>\n Simeon Hyman, global investment strategist at ProShares, told Blockworks it was unfair to compare EETH to BITO\u2019s \u201chistoric\u201d debut.\u00a0<\/p>\n Others noted that BITO launched during a bull market and offers exposure to an asset with a market capitalization more than double that of ETH.<\/p>\n Read more:<\/strong> The race begins: How ETH futures ETFs fared on day 1<\/a><\/p>\n Bloomberg Intelligence analysts Mike McGlone and James Seyffart said in a Sept. 29 research note that while ETH futures ETFs are likely to be a popular tool for traders, they may be \u201clargely ignored\u201d by financial advisers.\u00a0\u00a0<\/p>\n Because the ETFs track front-month ether futures, they are likely to offer \u201chigh sensitivity\u201d to the asset over the short, and perhaps medium term, the analysts argued. Their ability to track spot prices is expected to break down over time due to the costs of keeping front-month exposure.\u00a0<\/p>\n \u201cAdvisers, familiar with roll costs due to experience with commodity funds, will probably opt to get Ethereum exposure directly, wait for spot ETFs or choose thematic equity-based crypto and blockchain ETFs,\u201d McGlone and Seyffart wrote.<\/p>\n Fund issuers that weighed launching ether futures ETFs likely also had marketing in mind, as some fund groups look to ultimately build extensive crypto ETF suites<\/a>.\u00a0<\/p>\n VanEck\u2019s X account has shared videos around the launch of EFUT in a bid to educate investors about the fund\u2019s underlying asset.\u00a0\u00a0<\/p>\n Nate Geraci, president of The ETF Store, pointed to a more recent VanEck post that urged followers to check out the company\u2019s other offerings.\u00a0<\/p>\n \u201cThis is why you launch ether futures ETF even [though] you know spot ETFs will likely be approved in not-too-distant future,\u201d Geraci said in a Thursday X post<\/a>. \u201cMarketing expense. Plus demonstrate firm is forward-thinking around crypto.\u201d<\/p>\n Don\u2019t miss the next big story \u2013 join our\u00a0free daily newsletter<\/a>.<\/strong><\/p>\n
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