Ethereum futures exchange-traded funds (ETFs) launched on Monday after the SEC simultaneously approved nine products, marking a significant milestone for cryptocurrency investors.
Key Approved ETFs and Issuers
- Valkyrie Investments, VanEck Funds, ProShares, and Bitwise Asset Management introduced funds incorporating ether futures.
- ProShares and Bitwise launched multiple ETF versions.
- Other approved firms include Volatility Shares and Kelly Strategic Management.
Fee Structures
| ETF Ticker | Issuer | Expense Ratio |
|-----------|-----------------|--------------|
| EFUT | VanEck | 0.66% |
| AETH | Bitwise | 0.85% |
| BTOP | Bitwise | 0.85% |
| EETH | ProShares | 0.95% |
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Regulatory Context and Market Reaction
The SEC’s approval follows mounting pressure to embrace digital asset ETFs after rejecting spot bitcoin applications.
Ric Edelman, founder of the Digital Assets Council of Financial Professionals, noted:
"Gary Gensler approved ether futures ETFs to counter criticism post-Grayscale ruling and congressional scrutiny, signaling he’s not anti-crypto."
Analysts speculate the expedited approval was influenced by potential government shutdown risks.
Demand and Market Performance
- Ether ETFs garnered $2 million** on launch day, far below the **$200 million raised by the first bitcoin futures ETF (ProShares BITO) in 2021.
- Bryan Armour (Morningstar): "Bitcoin’s brand dominance overshadowed Ethereum’s launch."
- Matt Hougan (Bitwise CIO) countered: "Ethereum’s tangible use cases—like decentralized apps—offer unique value."
Spot ETF Prospects
Grayscale filed to convert its Ethereum Trust into a spot ETF, but experts caution this may not signal SEC openness to spot bitcoin ETFs.
FAQs
Q: Why did the SEC approve ether futures ETFs but delay spot bitcoin ETFs?
A: Futures ETFs track regulated derivatives, while spot ETFs involve direct crypto exposure—a sticking point for the SEC.
Q: How do ether futures ETFs differ from bitcoin futures ETFs?
A: Both track futures contracts, but ether ETFs focus on Ethereum’s price movements, offering diversification within crypto portfolios.
Q: What’s the long-term outlook for Ethereum ETFs?
A: Demand may grow as Ethereum’s ecosystem (e.g., DeFi, NFTs) expands, though bitcoin remains the market leader.
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Final Thoughts
The SEC’s move signals cautious crypto acceptance but leaves spot ETF approvals uncertain. Investors should weigh fees, liquidity, and underlying assets when choosing ETFs.