Ether futures ETFs are expected to make their debut in the U.S. soon, as major financial firms prepare to launch these products, causing a surge in ether prices and trading volumes. The quick approval of these futures ETFs has raised hopes for increased demand for ether from traditional finance players. Bloomberg ETF analyst Eric Balchunas has stated that ether futures ETFs are “highly likely (90% odds) to start rolling out in early Oct.” The U.S. Securities and Exchange Commission (SEC) is reportedly looking to accelerate the launch of these futures.
Short trades on ether face liquidations
However, short trades on ether (ETH) have suffered the consequences of futures liquidations in the past 24 hours. Bearish traders who bet against the asset have faced about $11 million in liquidations on crypto exchanges, accounting for nearly 85% of all ether liquidations on Thursday. OKX traders accounted for a third of liquidated positions, followed by Binance and Huobi.
VanEck announces preparation of Ether futures ETF
VanEck, an asset under management firm with $77.8 billion in assets, has announced the preparation of its ether futures ETF, called VanEck Ethereum Strategy ETF (EFUT). The fund will invest in standardized, cash-settled ETH futures contracts traded on commodity exchanges registered with the Commodity Futures Trading Commission (CFTC) and will be listed on CBOE.
Increased demand for ether from traditional finance players
The anticipated launch of ether futures ETFs has led to increased interest and demand for ether from traditional finance players. These ETFs will provide an opportunity for institutional investors to gain exposure to the cryptocurrency market without directly investing in the underlying asset. This is expected to boost the adoption of ether and contribute to its price appreciation.
Impact on ether prices and trading volumes
As major financial firms prepare to issue ether futures ETFs, ether prices have seen a significant surge. This has led to increased trading volumes, indicating a growing interest in the cryptocurrency. The approval and launch of these ETFs are expected to further drive up the demand for ether, potentially leading to even higher prices and trading volumes in the future.
Regulatory considerations
The SEC’s reported interest in accelerating the launch of ether futures ETFs indicates a possible shift in the regulatory landscape. While the SEC has been cautious in approving cryptocurrency-related products in the past, the quick approval of these futures ETFs could signal a more favorable regulatory environment for the crypto market.
In conclusion, the expected launch of ether futures ETFs in the U.S. has led to a surge in ether prices and trading volumes. The quick approval of these products has raised hopes for increased demand for ether from traditional finance players. As more financial firms prepare to launch their ether futures ETFs, the cryptocurrency market is likely to see further growth and adoption. However, it is crucial for investors to keep an eye on the regulatory landscape and be aware of the potential risks associated with these products.
