Financial Giants Swiftly Apply for Ethereum Futures ETFs Following Bitcoin’s Success

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After the recent surge in optimism brought by applications for spot Bitcoin ETFs, several major financial institutions are now scrambling to apply for Ethereum futures ETFs. The demand for cryptocurrency-based exchange-traded funds has surged in recent times, with investors seeking exposure to the burgeoning digital asset market.

Ethereum ETF Rush Amidst Growing Interest in Crypto Investment Opportunities

The applications for spot Bitcoin ETFs by Fidelity Investments, BlackRock, WisdomTree, and many other financial giants in mid-June 2023 brought strong optimism to the broader crypto community. 

In addition to Bitcoin, some financial giants are now seeking to launch ETFs for Ethereum futures. Such financial institutions, like Volatility Shares, Bitwise, Roundhill, VanEck, Proshares, and Grayscale, have already applied for Ethereum futures ETFs.

Eric Balchunas, a senior ETF analyst at Bloomberg, stated in his tweet that “In their filing with the SEC on July 28, Volatility Shares outlined its proposal for the Ether Strategy ETF, which aims to invest in cash-settled Ether Futures contracts traded on the Chicago Mercantile Exchange (CME), bypassing direct investments in Ether.

The company is now seeking approval for a new filing after launching the country’s first leveraged Bitcoin futures ETF, the 2x Bitcoin Strategy ETF (BITX). However, the proposed ETF is designed to provide twice the daily excess return of the S&P CME Bitcoin Futures Daily Roll Index.

Although, Balchunas shared his observations on Twitter, pointing out the recent withdrawal of some Ether filers with the SEC. Despite this, Volatility Shares remain confident, especially after successfully introducing the 2x Bitcoin Futures ETF.

Ethereum Price Shows a 2% Uptick Amidst Mixed Sentiment in the Options Market

In the last 24 hours, Ethereum’s price has gained more than 2% after initially being under pressure from sellers earlier this week. Currently, ETH is trading at $1,858.05 with a market cap of $223 billion.

Despite the recent uptick, Ethereum options data indicates a negative bias for the cryptocurrency’s price action over the next six months. According to Amberdata, the six-month call-put skew for Ether currently stands at -0.91, the lowest since June 15.

This negative value suggests a preference for put options, which grant the buyer the right, but not the obligation, to sell the underlying asset at a predetermined price on or before a specific date. A put buyer is essentially bearish on the market, while a call buyer is bullish.

As the market navigates through mixed sentiment, investors and traders closely monitor Ethereum’s price movements and options market indicators. Despite the recent volatility, the digital asset continues to attract attention and remains a key player in the dynamic cryptocurrency landscape.