ETF Ethereum Futures with 2x Leverage Set to Begin Trading
U.S. regulators previously approved the Volatility Shares 2x Bitcoin ETF over a year ago. Now, the asset management firm is set to launch its first Ethereum ETF with 2x leverage, starting on June 4th.
ETF Ethereum Futures with 2x Leverage Set to Begin Trading
The Volatility Shares 2x Ethereum ETF (ticker symbol ETHU) will become the first 2x leveraged Ethereum ETF in the United States. The ETF is scheduled to commence trading on June 4th (local time).
SCOOP: The Volatility Shares 2x Ether ETF (ETHU) will become the first leveraged ether ETF available in the U.S. Trading will begin on June 4.
— CoinDesk (@CoinDesk) May 28, 2024
By @amitojhttps://t.co/3hqzNDk2fv
Leveraged ETFs are a popular financial derivative tool in traditional financial markets. As reported by Coin68, the Volatility Shares 2x Bitcoin Strategy ETF (ticker symbol BITX) was officially listed on the stock exchange in June 2023.
At that time, Volatility Shares claimed their product as the first leveraged Bitcoin futures ETF in the U.S., and it has been trading for about 7 months since SEC approval.
Speaking to CoinDesk, Stuart Barton, Chief Investment Officer at Volatility Shares, mentioned that SEC's nod could pave the way for final approvals of spot Ethereum ETFs. Last week, SEC approved crucial legal filings related to spot ETFs, but new S-1 filings are required for official listing.
Barton commented:
"While details around spot ETFs are still under discussion with the SEC, the launch of a 2x leveraged Ethereum ETF clearly signals SEC's increasing appetite for cryptocurrency ETFs."
The price of ETH has shown minimal movement, currently trading around $3,848 USD.
Chart of the ETH/USDT pair on Binance at 11:30 AM on May 29th, 2024
Meanwhile, the Bitcoin spot ETF concluded a streak of 10 consecutive green days on May 24th, with total inflows reaching $2 billion USD.
According to data from Farside Investors, BlackRock's IBIT led with $102.5 million USD. Fidelity's FBTC followed with inflows of $34.4 million USD, while Ark Invest's ARKB and 21Shares trailed with $4.1 million USD on May 28th.
Statistics on U.S. Bitcoin ETFs as of May 28th, 2024. Source: Farside Investors
However, Grayscale's GBTC noted an outflow of $105.2 million USD, resulting in net inflows of only $45 million USD on May 28th.
Since their debut in January, U.S. Bitcoin spot ETFs have accumulated total net inflows of $13.73 billion USD.
