Nine new investment things linked to Ethereum were launched recently, and the excitement around them didn’t translate into a lot of people putting their money in.
On October 2, these new things, called exchange-traded funds (ETFs), were introduced. They are like bundles of investments that follow the value of Ethereum’s currency, Ether. Out of the nine, five only focus on Ether, while the other four follow a mix of Bitcoin and Ether.
A finance expert from Bloomberg, Eric Balchunas, said it was a pretty average day in terms of people buying these investments. On the first day, all nine of them together had less than $2 million worth of trading.
The most popular one, Valkyrie’s Bitcoin Strategy ETF, which includes both Bitcoin and Ether, had about $882,000 worth of trading. This particular ETF was already trading with only Bitcoin since October 2021, but they changed their plan to include Ether.
When you compare the first-day trading of these Ethereum ETFs to a similar one for Bitcoin in 2021, it’s not as impressive. The Bitcoin ETF had over $1 billion in trading on its first day. However, Balchunas mentioned that compared to regular finance investments, the Ethereum ETFs had a decent amount of trading, even though investors usually prefer different types of investments.
Balchunas also explained that all these ETFs were introduced on the same day because the Securities and Exchange Commission (SEC) wanted to avoid one becoming too dominant in the market.
While many U.S. companies were trying to lead in the new market for Ethereum futures, one ETF company, Volatility Shares, decided not to go ahead with their plan. They said they didn’t see a good opportunity at the moment.