Leveraged Ethereum futures ETF to debut on CBOE before spot ETFs launch

cyptouser4 months agoCryptocurrencies News67
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 more significant positions than their initial deposit, magnifying their exposure to price movements. The platform provider loans the difference between the trade value and the investor’s margin deposit.

Several Ethereum futures ETFs already exist in the US, including ProShares’ Ether Strategy ETF (EETH), VanEck’s Ethereum Strategy ETF (EFUT), and Bitwise’s Ethereum Strategy ETF (AETH). While these ETFs faced slow initial adoption, trading volumes surged after the US Securities and Exchange Commission (SEC) unexpectedly approved 19b-4 filings for eight spot ETH ETFs last week.

When will Ethereum ETFs launch?

The anticipated launch of the leveraged Ethereum futures ETF has reignited speculation about when the recently approved ETFs would start trading.

Nate Geraci, President of ETF Store, said the approval of spot Ethereum ETF registration statements could occur within weeks or, at most, a few months. Geraci emphasized that, given the groundwork already completed with spot Bitcoin and Ethereum futures ETFs, the launch hinges on the SEC’s decision. He said:

“My expectation would be next few weeks [or] 2-3 months max. [In my opinion], heavy lifting [is] already done following spot BTC ETFs & ETH futures ETFs. Just a matter of how long SEC wants to string this out.”

Bloomberg ETF analyst James Seyffart echoed this sentiment during a recent podcast appearance, pointing out that there is no definitive timeline as the products require S-1 filing approvals, which include essential risk disclosures.

Meanwhile, banking giant JPMorgan has predicted that the ETFs would start trading before the US November elections.

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