Ethereum
Leveraged Ethereum Futures ETF to Debut on CBOE Ahead of Spot ETFs Launch
The Volatility Shares 2x Ether Strategy ETF (ETHU) will become the first leveraged Ethereum ETF to trade on the Chicago Board Options Exchange (CBOE) by June 4, according to a disclosure on its website.
Leveraged trading allows investors to control positions larger than their initial deposit, increasing their exposure to price movements. The platform provider lends the difference between the trade value and the investor’s margin deposit.
Several Ethereum futures ETFs already exist in the United States, including ProShares’ Ether Strategy ETF (EETH), VanEck’s Ethereum Strategy ETF (EFUT), and Bitwise’s Ethereum Strategy ETF (AETH). Even though these ETFs faced slow initial adoption, trading volumes jumped after the United States Securities and Exchange Commission (SEC), unexpectedly approved 19b-4 filings for eight spot ETH ETFs last week.
When will Ethereum ETFs launch?
The planned launch of the Ethereum Leveraged Futures ETF has reignited speculation about when the recently approved ETFs would begin trading.
Nate Geraci, President of ETF Store, said approval of the Ethereum ETF spot registration statements could happen within a few weeks or, at most, a few months. Geraci emphasized that, given the groundwork already done with the Bitcoin and Ethereum spot futures ETFs, the launch depends on the SEC’s decision. He said:
“I expect it to be in the next few weeks [or] 2-3 months maximum. [In my opinion]heavy lifting [is] already follows BTC spot ETFs and ETH futures ETFs. Just a question of how long the SEC wants to extend this.
James Seyffart, analyst at Bloomberg ETF echoes this sentiment during a recent podcast appearance, emphasizing that there is no definitive timeline as products require S-1 filing approvals, which include essential risk disclosures.
Meanwhile, the banking giant J.P. Morgan predicted that ETFs start trading ahead of the US elections in November.
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Liam “Akiba” Wright
Senior Editor at CryptoSlate
Also known as “Akiba,” Liam is a journalist, editor, and podcast producer at CryptoSlate. He believes that decentralized technology has the potential to bring positive change on a large scale.