The much-anticipated launch of ether futures exchange-traded funds (ETFs) in the United States has fallen flat, failing to capture the investor excitement seen during previous crypto ETF rollouts. Despite regulatory green lights and high market expectations, trading volume for the newly debuted funds was underwhelming—highlighting ongoing skepticism and tepid retail engagement in the current cryptocurrency climate.
A Quiet Market Entrance
Nine ether futures ETFs launched simultaneously in the U.S., backed by futures contracts tied to ether—the native cryptocurrency of the Ethereum blockchain, which powers most decentralized applications and smart contracts. The coordinated debut followed a fast-tracked approval process by regulators aiming to avoid delays amid concerns over a potential government shutdown, which has since been averted.
However, the market response was lukewarm at best. According to data from Bernstein, total trading volume across all nine funds amounted to just $6.6 million** on their first day. This pales in comparison to the **$1 billion in assets accumulated by the ProShares Bitcoin Strategy ETF (BITO) within its first two days of trading in October 2021—a period marked by peak crypto enthusiasm and a surging bull market.
👉 Discover how digital asset investment vehicles are evolving in 2025.
Why the Lackluster Launch?
Gautam Chhugani, senior analyst for global digital assets at Bernstein, attributed the weak start to several factors. "The ether futures ETFs opened to a rather tame start on Monday. Total trading volume was $6.6 million, which was a disappointing start," he noted. He suggested that media attention may have been diverted by high-profile events such as the ongoing trial of FTX founder Sam Bankman-Fried, potentially overshadowing the ETF launch.
More importantly, Chhugani emphasized that the current environment lacks the retail investor fervor that fueled earlier crypto rallies. "This is not surprising, given the continued weak retail sentiment towards cryptocurrencies," he explained. In contrast, BITO’s debut coincided with the height of a digital asset bull run, when prices and public interest were soaring.
Bradley Duke, chief strategist at ETC Group, offered a more measured perspective: “Like any listed security, success or failure cannot be measured on the first days of trading. Market sentiment and the macro environment all have a bearing on performance.”
Ether’s Price Struggles Continue
Despite a 10% rally in ether’s price the week before the ETF launch—driven by anticipation—the asset remains far below its all-time highs. Ether is currently priced at $1,663, down 64% from its November 2021 peak. It dropped 4% on the day of the ETF debut, reflecting investor underwhelm.
It’s important to note that these are futures-based ETFs, not spot ETFs. This means they invest in futures contracts rather than holding actual ether. As such, their trading activity doesn’t directly influence ether’s market price—unlike spot ETFs, which can drive demand by purchasing the underlying asset.
Bitcoin, too, remains 57% below its November 2021 highs, reinforcing the view that cryptocurrencies behave as high-beta, procyclical assets—rising sharply in bullish markets but falling harder during downturns.
Who’s Actually Trading These Funds?
Most of the trading volume on launch day didn’t come from the new ETFs. Instead, the bulk of activity flowed through the Valkyrie Bitcoin Strategy ETF (BTF), which rebranded to include ether exposure and saw $4.6 million in volume.
Among the new entrants, the ProShares Ether Strategy ETF (EETH) led with $879,000** in turnover, followed by the **VanEck Ethereum Strategy ETF (EFUT)** at **$516,000—modest figures by ETF standards.
Regulatory Landscape and Future Outlook
The U.S. still prohibits spot bitcoin and ether ETFs—considered the "holy grail" of crypto investing—due to concerns over fraud and market manipulation on unregulated crypto exchanges. The Securities and Exchange Commission (SEC) has historically allowed futures-based ETFs because they rely on regulated derivatives markets like the Chicago Mercantile Exchange (CME).
Despite losing a landmark court case to Grayscale in August—where a judge ruled the SEC must reconsider its denial of Grayscale’s application to convert its $17.4 billion Bitcoin Trust (GBTC) into a spot ETF—the regulator has maintained its cautious stance.
However, its approval of ether futures ETFs signals a subtle shift. Rather than scrapping existing bitcoin futures ETFs to maintain policy consistency, the SEC appears to be moving forward with incremental crypto integration.
👉 Learn how regulatory developments are shaping crypto investment strategies.
Europe’s Head Start in Crypto ETPs
While the U.S. lags in spot products, Europe has embraced both spot and futures crypto exchange-traded products (ETPs). There are currently 13 pure ether ETPs in Europe with €1.1 billion in assets under management—compared to €2.6 billion across 20 bitcoin ETPs—according to TrackInsight.
This regulatory divergence highlights how U.S. investors are being served secondhand exposure through futures, while European investors can gain direct ownership of physical crypto assets.
What’s Next? Spot ETFs on the Horizon?
Over a dozen asset managers—including BlackRock, Fidelity, Ark Invest, WisdomTree, VanEck, and Grayscale—have pending applications for spot bitcoin ETFs. Chhugani believes a “distinct shift” is evident in the SEC’s approach: “Applicants are seeing a more engaged SEC being responsive, unlike the past.”
He predicts the first spot bitcoin ETF could be approved by early January 2025, with spot ether ETFs following shortly after. Grayscale has already filed to convert its $5 billion Ethereum Trust (ETHE) into an ETF, joining Ark and VanEck in seeking regulatory approval.
Bradley Duke summed up the broader significance: “What is clear is that, like bitcoin, the listing of these ethereum futures ETFs is ultimately paving the way for a spot ethereum ETF in the US.”
Frequently Asked Questions (FAQ)
Q: What are ether futures ETFs?
A: Ether futures ETFs are exchange-traded funds that invest in futures contracts based on ether prices, rather than holding ether directly. They allow investors to gain exposure to ether’s price movements without owning the cryptocurrency.
Q: Why did the ether futures ETFs perform poorly on launch?
A: Weak retail sentiment, lack of spot exposure, and a bearish crypto market contributed to low trading volume. Investor enthusiasm has waned since the 2021 bull run.
Q: Can these ETFs affect ether’s price?
A: No. Since they invest in futures contracts traded on regulated exchanges like CME, their activity does not directly impact the spot price of ether.
Q: What’s the difference between futures and spot ETFs?
A: Futures ETFs track derivatives contracts, while spot ETFs hold the actual cryptocurrency. Spot ETFs are considered more transparent and efficient but face stricter regulatory scrutiny in the U.S.
Q: When might spot ether ETFs launch in the U.S.?
A: If regulatory trends continue, spot ether ETFs could launch in early 2025, following expected approvals for spot bitcoin ETFs.
Q: Are ether futures ETFs safe for retail investors?
A: Yes. These products are regulated and offer a secure way to access crypto markets without managing private keys or using exchanges—reducing risks like theft or fraud.
👉 Stay ahead of crypto investment trends with expert insights and market analysis.