The recent success of Spot Bitcoin ETF applications has created excitement among financial giants. Now they are turning their attention to the leading altcoin, Ethereum. Six leading companies including Volatility Shares, Bitwise, Roundhill, VanEck, Proshares, and Grayscale have recently filed for Ethereum futures exchange-traded funds (ETFs), a move that has boosted optimism within the wider crypto community. This important step shows a growing interest in the world’s second largest cryptocurrency. It reflects the financial giants’ confidence in the future of crypto assets. The Securities and Exchange Commission (SEC) is considering these groundbreaking applications. Meanwhile, market experts are watching developments closely. It highlights the potential impact these ETFs can have on the dynamics of the crypto market. Here are the details…
Leading altcoin attracts attention lately
The momentum gained by Volatility Shares’ 2x Bitcoin Strategy ETF (BITX) encouraged the company to take a step forward. Instead of holding Ethereum directly, the proposed Ether Strategy ETF will invest in cash-settled Ether Futures contracts traded on the Chicago Mercantile Exchange (CME). This new filing aims to correspond to twice the daily excess return of the S&P CME Bitcoin Futures Daily Roll Index, as reported in the SEC filing on July 28. Eric Balchunas, a senior ETF analyst at Bloomberg, shared his views on Twitter. Balchunas used the following statements:
It is interesting that the SEC has withdrawn some new Ethereum filings. However, VolShares (against all) has issued 2x Bitcoin Futures ETFs. So maybe they feel confident that the time is right.
Here's fresh update of the Ether Futures ETF Race, which now has SIX in the running.. nice job by @JSeyff for putting together so quickly pic.twitter.com/G1rwwfaFoS
— Eric Balchunas (@EricBalchunas) August 1, 2023
ETH price moves positively
According to the cryptokoin.com data, Ethereum has made some positive developments. Despite facing selling pressure earlier in the week, Ethereum (ETH) price has recovered and has gained more than 2% in the past 24 hours. At the time of writing, the altcoin is trading at $1,860 with a market cap of $225 billion. Ethereum’s recent price volatility has also been reflected in the options market. According to crypto data provider Amberdata, the six-month trading skewness for Ethereum, which measures the difference between the implied volatility of call and put options expiring in 180 days, has reached its lowest point since June 15.
A negative skewness of 0.91 indicates preference for put options and indicates a bearish trend among investors. Put options give the buyer the right, but not the obligation, to sell the underlying asset at a predetermined price on or before a specified date. Despite this negative trend in the options market, the growing interest from major financial companies applying for Ethereum futures ETFs is critical. It demonstrates strong belief in the altcoin’s long-term potential. While regulators are reviewing these applications, the broader crypto community remains optimistic about Ethereum’s prospects and the evolving landscape of crypto-asset investments.
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