CBOE debuts using Ethereum futures ETF prior to launch of spot ETF
According to a disclosure on its website, the Volatility Shares 2x Ether Strategy ETF (ETHU) will be the first leveraged Ethereum ETF to trade on the Chicago Board Options Exchange (CBOE) by June 4.
Leveraged trading allows investors to control positions that are more significant than their initial deposit, increasing their exposure to price fluctuations. The platform provider lends the difference between the transaction amount and the investor’s margin.
Several Ethereum futures ETFs already exist in the U.S., including ProShares’ Ether Strategy ETF (EETH), VanEck’s Ethereum Strategy ETF (EFUT), and Bitwise’s Ethereum Strategy ETF (AETH). While initial adoption of these ETFs has been slow, trading volume has surged since the U.S. Securities and Exchange Commission (SEC) unexpectedly approved 19b-4 filings for eight spot ETH ETFs last week.
When will the Ethereum ETF be released?
The expected launch of a leveraged Ethereum futures ETF has reignited speculation about when the recently approved ETF will begin trading.
Nate Geraci, president of the ETF Store, said approval of the spot Ethereum ETF registration statement could occur within weeks or at most months. Geraci emphasized that given the groundwork already completed with the spot Bitcoin and Ethereum futures ETFs, their launch would depend on the SEC’s decision. He said:
“My estimate is the next few weeks (or) two to three months at most. (In my opinion) the heavy lifting for the spot BTC ETF and ETH futures ETF has already been done. “The question is how long the SEC wants to uncover this matter.”
Bloomberg ETF analyst James Seyffart echoed this sentiment in a recent podcast appearance, noting that there is no firm timeline for the product because it requires approval of an S-1 filing containing the required risk disclosures.
Meanwhile, banking giant JPMorgan predicted that the ETF would begin trading before the November US election.
Liam ‘Akiba’ Wright
Liam, also known as “Akiba,” is a reporter, editor, and podcast producer at CryptoSlate. He believes that decentralized technology has the potential to create widespread positive change.
