Volatility Shares, a financial firm offering a range of exchange-traded fund (ETF) products, canceled its plans to launch an Ether (ETH) futures ETF on Oct. 2, citing changes in the market.
In an email with Cointelegraph, the company’s co-founder and president, Justin Young, confirmed the cancellation:
“You are correct — we did not launch today. We didn’t see the opportunity at this point in time.”
However, when asked if the company still planned to launch an ETH futures ETF at a later date, Young responded, “Of course,” adding that “plans are TBD.”
Ether futures ETFs track the prices of ETH futures contracts — agreements to trade the asset at a specific time and price in the future. Essentially, they allow investors to be involved in ETH trading without having to actually hold any of the cryptocurrency.
Related: SEC continues to delay decisions on crypto ETFs: Law Decoded
Volatility Shares was previously positioned to be the first firm to offer an ETH futures ETF. The United States Securities and Exchange Commission was expected to approve the first such product on Oct. 12, but concerns over the previously impending Oct. 1 U.S. government shutdown reportedly prompted the SEC to move the timeline for approval up.
As of Oct. 2, several firms have begun 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 wrote, “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 a twist, the U.S. government managed to avoid the shutdown by passing a stopgap measure to keep services funded through Nov. 17, with the Senate voting 88-9 to pass the measure. U.S. President Joe Biden signed it into law immediately.
Sourced from cointelegraph.com.
Written by Tristan Greene on 2023-10-02 21:01:05.
