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Volatility Shares halts launch of ETH futures ETF, stating ‘didn’t see the opportunity at this point in time’
Volatility Shares, a financial company that provides a variety of exchange-traded fund (ETF) products, has abandoned its plans to introduce an Ether (ETH) futures ETF on Oct. 2, citing shifts in the market.
In a communication with Cointelegraph, the firm’s co-founder and president, Justin Young, verified the cancellation:
“You are correct — we did not launch today. We didn’t see the opportunity at this point in time.”
When inquired whether the company still intended to launch an ETH futures ETF in the future, Young replied, “Of course,” noting that “plans are TBD.”
Ether futures ETFs are designed to follow the prices of ETH futures contracts — agreements to exchange the asset at a predetermined time and price in the future. Essentially, they enable investors to participate in ETH trading without needing to actually possess any of the cryptocurrency.
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Volatility Shares was previously set to be the first entity to provide an ETH futures ETF. The United States Securities and Exchange Commission was anticipated to approve the first such product on Oct. 12, but apprehensions regarding the previously looming Oct. 1 U.S. government shutdown reportedly led the SEC to expedite the approval timeline.
As of Oct. 2, multiple firms have commenced trading ETH futures ETFs, including Valkyrie, VanEck, ProShares, and Bitwise.
Pretty meh volume for the Ether Futures ETFs as a group, a little under $2m, about normal for a new ETF but vs $BITO (which did $200m in first 15min) it is low. Tight race bt VanEck and ProShares in the single eth lane. pic.twitter.com/F9AHtrVcVf
— Eric Balchunas (@EricBalchunas) October 2, 2023
As Cointelegraph’s Turner Wright recently noted, “Bills for the good or ill of digital assets would be halted amid a shutdown, and financial regulators, including the Securities and Exchange Commission and Commodity Futures Trading Commission, would be running on a skeleton crew.”
In an unexpected turn, the U.S. government successfully averted the shutdown by enacting a stopgap measure to maintain funding for services through Nov. 17, with the Senate voting 88-9 in favor of the measure. U.S. President Joe Biden signed it into law immediately.
