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Over 90% of Ethereum ETF trading volume is down to two funds

Over 90% of Ethereum ETF trading volume is down to two funds
Snapshot
Trading in Ethereum futures ETFs is heavily concentrated on VanEck and ProShares funds. Credit: Justin Lane/EPA-EFE/Shutterstock
  • The Ethereum futures ETF market has picked up slightly after a “disappointing” start to the week.
  • The six Ethereum funds launched Monday have accrued a total of $16 million in trading volume.
  • However, VanEck and ProShares’ funds make up over 90% of trading volume

Happy Thursday!

The Ethereum exchange-traded funds market is picking up speed after a sluggish start, with VanEck and ProShares taking an early lead. Their funds have broken out of the pack and account for over 90% of the total trading volume.

Let’s get into it.

Slow and steady

Ethereum funds have attracted around $16 million in trading volume since Monday.

The two leading ETFs are VanEck’s EFUT and Proshares’ EETH, which attracted about $8 million and $6 million in volume, respectively. VanEck’s fund flipped ProShares after trailing it on day one.

Bitwise’s Ethereum ETF also launched this week, it attracted about $620,000. ProShares and Bitwise began adding Ethereum to three other funds too.

The Ethereum futures ETF launch had been “disappointing,” K33 Research’s Vetle Lund said on Tuesday.

ETFs offer investors a way to bet on the performance of stocks, commodities, and cryptocurrencies.

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While structured products have become more popular in recent years, they don’t come without risks.

A Citigroup report on Wednesday estimated that 50% of US-based ETFs operate at a loss for issuers.

Invesco’s QQQ ETF has around $200 billion in assets under management, but it doesn’t make money for the asset manager.

It’s a “brutally competitive industry,” said Nate Geraci, president of financial advisor the ETF Store.

Despite the savage competition, more Ethereum ETFs could be on the way — this time spot products, tracking the live price rather than the price in the future.

Digital asset manager Grayscale filed to convert its Ethereum trust into a spot ETF on Monday. The asset manager isn’t alone, Galaxy Digital and Invesco, among others, have recently filed for spot products.

It’s not just Ethereum funds though. Crypto investors are still eagerly awaiting the approval of a spot Bitcoin ETF. While most live applications have been delayed until early 2024, there is one hope left.

Grayscale, the digital asset manager, won its appeal against the US Securities and Exchange Commission’s rejection of its application in August. The regulator’s deadline to appeal the decision is next Friday, October 13.

Crypto market movers

  • Bitcoin traded around $27,600, up just about 0.3% over the last 24 hours.
  • Ethereum fell by 0.8% to $1,638.
  • Altcoins dropped overnight. Solana’s SOL fell 2.7% and Cardano’s ADA jumped by 0.18%

What we’re reading

Adam Morgan McCarthy is DL News’ London-based Markets Correspondent. Got a tip? Reach out at adam@dlnews.com. Tom Carreras is a Markets Correspondent at DL News. Got a tip? Reach out at tcarreras@dlnews.com