Traders rush to short Ether as Grayscale pulls its futures ETF plan

May 8, 2024 Coin Telegraph

Ethereum futures ETFs garner lukewarm reception on first day of trading

October 3, 2023 Coin Telegraph

Day one trading volume across all nine products stood at less than $2 million.

The rush of excitement that accompanied the launch of nine new Ethereum futures exchange-traded funds (ETFs) appears to have yielded little in the way of investment dollars in comparison.

On Oct. 2, nine new ETF products, which are designed to track futures contracts tied to the value of Ethereum’s native currency Ether (ETH) arrived on the market. Of these funds only five hold exclusively Ether futures, while the other four track a mixture of Bitcoin and ETH futures contracts.

“Pretty meh day of volume,” wrote senior Bloomberg ETF analyst Eric Balchunas on X (formerly known as Twitter) on Oct. 2.

Unprecedented day today with multiple ETFs all launching at same time. No clear winner has emerged, all of them were pretty average, lower than I would have predicted, but its a long run and remember, these hold futures (ETF investors much prefer physical to derivatives) https://t.co/fKGOv8T7pP
— Eric Balchunas (@EricBalchunas) October 2, 2023

In total, all nine ETFs witnessed less than $2 million worth of trading volume as of midday EST on the first day of trading.

The most popular of the futures ETF products was Valkyrie's BTF — which tracks a combination of Bitcoin and Ether — racking up a total of $882,000 worth of volume.

It’s worth noting that BTF had already been trading as a Bitcoin-only futures ETF since Oct. 2021, but adjusted its strategy to include ETH.

The first-day trading volume of the Ether ETFs paled in comparison to that of ProShares Bitcoin Strategy ETF (BITO), which debuted in October 2021 during a roaring market for crypto assets. BITO witnessed more than $1 billion in trading volume on its first day.

However, Balchunas noted that compared to a regular traditional finance ETF launch, the volume witnessed was actually “quite a lot,” though investors tend to prefer spot ETF products over futures.

Balchunas explained that all of the products were scheduled for launch on the same day as the SEC wanted to prevent any one fund from gaining market domination.

Meanwhile, while a range of United States firms jostled for pole position in the nascent Ether futures market, ETF firm Volatility Shares canceled its plans to list a similar product, saying that it “didn’t see an opportunity” at the current time.

Magazine: How to protect your crypto in a volatile market — Bitcoin OGs and experts weigh in

VanEck, ARK filings ‘officially’ start clock for spot Ethereum ETFs: Analyst

September 7, 2023 Coin Telegraph

19b-4 Form

Bloomberg ETF analyst James Seyffart expects more spot Ethereum ETFs to be filed in the coming days.

The race for the United States’ first spot Ethereum exchange-traded fund has officially begun after new 19b-4 filings by the Chicago Board Options Exchange (CBOE), which will "ultimately start the clock" for an SEC decision.

On Sept. 6, the CBOE filed two 19b-4 applications to the United States securities regulator, requesting for the ARK 21Shares Ethereum ETF and VanEck Ethereum ETF investment products to be listed on CBOE’s BZX Exchange.

In a series of tweets, Bloomberg ETF analyst James Seyffart noted that as opposed to the previously submitted S-1 filings, the 19b-4 filings mean that the countdown for a decision by the SEC is now in motion.

“The Spot #Ethereum ETF Race is officially on,” Seyffart declared, estimating a final deadline around May 23, 2024.

The Spot #Ethereum ETF Race is officially on. It's early but i'd estimate a final deadline on these applications to be around ~May 23, 2024.

Notably, we didn't see a VanEck spot Ethereum ETF S-1 from VanEck earlier because they filed for this thing all the way back in 2021!! pic.twitter.com/jLve8PpPrE
— James Seyffart (@JSeyff) September 6, 2023

A 19b-4 form is filed by self-regulatory organizations — such as a stock exchange — to request a rule change to the U.S. Securities and Exchange Commission, while an S-1 filing only indicates a firm’s intention to list a particular investment product on a national exchange.

The securities regulator is now obligated to review the 19b-4 filings and make a decision, though the SEC can also delay the decision as it has for spot Bitcoin ETFs.

ARK Invest and 21Shares teamed up to file an S-1 to the SEC on Sept. 6, though VanEck’s S-1 filing dates back to July 2021.

Late to the party? We filed our S-1 for a Spot Ether ETF back on 5/7/2021. https://t.co/hYE6TG90Q3
— VanEck (@vaneck_us) September 6, 2023

Meanwhile, Seyffart expects more spot Ethereum ETF filings to come in the coming days.

How long before we see a 19b-4 from @Grayscale to convert $ETHE into an ETF? https://t.co/078sm9FNlF pic.twitter.com/pzSEcMrtZB
— James Seyffart (@JSeyff) September 6, 2023

On Aug. 17, the securities regulator reportedly signaling its intention to approve Ethereum Futures investment products while several firms including Grayscale Investments and BlackRock are currently fighting to get a spot Bitcoin ETF approved.

Magazine: How to protect your crypto in a volatile market — Bitcoin OGs and experts weigh in

ARK Invest, 21Shares join queue to offer Ethereum futures ETF

August 24, 2023 Coin Telegraph

21shares

The co-filing comes just a week after reports emerged that the SEC is likely to greenlight Ethereum ETF applications.

Investment firms ARK Invest and 21Shares have teamed up to apply for two Ethereum futures exchange-traded funds after reports emerged last week that the United States securities regulator could soon begin approving applications.

The two proposed Ethereum futures ETFs are “ARK 21Shares Active Ethereum Futures ETF” (ARKZ) and the “ARK 21Shares Active Bitcoin Ethereum Strategy ETF” (ARKY), according to an Aug. 24 filing to the Securities and Exchange Commission.

The filing states that ARKZ would invest at least 25% of its total assets in cash-settled Ethereum futures contracts, such as those traded on the Chicago Mercantile Exchange (CME).

*ARK 21Share has filed two more Bitcoin/ Ethereum ETF applications to the SEC. Source: SEC.*

ARKY, on the other hand, will consist of both Bitcoin and Ethereum futures contracts.

Empowered Funds has been assigned as investment advisor for the two Ethereum products.

Ark Invest and 21Shares first partnered to launch a spot Bitcoin ETF in 2021.

The SEC knocked back its first two attempts in March 2022 and January. Its most recent Bitcoin spot ETF application was filed in April — about two months before $10 trillion firm BlackRock put in its own application.

However, the SEC recently labeled many of the Bitcoin spot ETF applications as inadequate, which prompted ARK 21Shares and other applicants to add in a surveillance sharing agreement to their applications.

The investment firms are also awaiting the outcomes of Ark 21Shares Active Bitcoin Futures ETF (ARKA) and Ark 21Shares Active On-Chain Bitcoin Strategy ETF (ARKC),

Magazine: DeFi Dad, Hall of Flame: Ethereum is ‘woefully undervalued’ but growing more powerful

Ethereum surges 11% after report SEC is set to approve Futures ETF

August 18, 2023 Coin Telegraph

Coin Telegraph

The United States Securities and Exchange Commission isn't likely to block the debut of Ethereum futures ETFs, according to sources.

The price of Ether (ETH) surged around 11% to $1,700 following news that the United States Securities and Exchange Commission is set to allow the first exchange-traded funds (ETFs) based on Ether Futures.

According to an Aug. 17 report from Bloomberg — which cited anonymous sources familiar with the matter — the regulator does not look as though it will block the applications of nearly twelve companies, including ProShares, Volatility Shares, Bitwise and Roundhill, that have filed to launch Ether (ETH) futures ETFs in recent weeks.

Breaking

The SEC is expected to green light an ETH futures ETF

The beginning of something potentially massive here… pic.twitter.com/x9KtOpCqei
— Bankless (@BanklessHQ) August 17, 2023

It remains unclear which ETF applications would be approved by the SEC; however, officials indicated that several of the filings may be approved by as soon as October.

ETF analyst Eric Balchunas said he wasn't surprised by the SEC's move to approve Ether futures ETFs, adding that the decision shows how the regulator's views on different products, such as a spot Bitcoin ETF can change over time.

This not surprising to us, we had said they would approve Ether Futures early on in race. Nice to be validated. Now what does it mean for spot? Hard to say beyond it shows that their views/policy/tolerance can change. https://t.co/JXCxNUpj2U
— Eric Balchunas (@EricBalchunas) August 17, 2023

The SEC has been inundated with applications for Ether futures ETFs, with more than 12 filings for such products being submitted to the regulator since late July.

The news pushed ETH's price back up 11% to $1,717 just 20 minutes after the market took a tumble two hours earlier.

*The price of Ether jumped 11% following the news that the SEC would approve Ether futures ETFs. Source: TradingView*

Big Questions: Did the NSA create Bitcoin?

Ethereum futures etf