Volatility Shares Retreats from Ethereum Futures ETF Launch Amid Market Instabilities
Summary:
Volatility Shares has decided to back out from launching an Ethereum futures exchange-traded fund (ETF) on Oct. 2 due to fluctuating market conditions. However, the company's president Justin Young hinted at future plans for such an offering. Several companies, including Valkyrie, VanEck, ProShares, and Bitwise, have already started trading Ethereum futures ETFs. The decisions come amidst a tense financial climate, stemming from fears of a U.S. government shutdown, which was eventually averted with a stopgap measure.
Financial institution Volatility Shares has scrapped its intent to launch an Ethereum futures exchange-traded fund (ETF), planned for Oct. 2, in response to unstable market fluctuations. As confirmed in email correspondence with Cointelegraph, Justin Young, co-founder and president of Volatility Shares admitted, “Indeed, we did not kick-off as planned today. The current market conditions didn't present a viable opportunity.” However, when asked about future prospects for launching an ETH futures ETF, he replied, “Absolutely, but the plans are yet to be decided.” An Ethereum futures ETF is a type of ETF paralleling the cost of Ethereum futures agreements, which are contracts to buy or sell ETH at a set price and date. This allows investors to dip their toes in ETH trading without owning any Ethereum. Related: SEC puts off verdicts on crypto ETFs: Law DecodedPreviously, Volatility Shares was all set to be the pioneer in launching an ETH futures ETF. Cointelegraph previously revealed that Oct. 12 was fixed as the date when the Securities and Exchange Commission (SEC) would likely green-light the first ETH futures ETF. But fears of the looming Oct. 1 U.S. government shutdown allegedly drove the SEC to fast-track the approval process. As of Oct. 2, a handful of firms, including Valkyrie, VanEck, ProShares, and Bitwise, have commenced ETH futures ETF trading.
As per a recent post by Cointelegraph’s Turner Wright, “A shutdown would render all digital asset-related bills static and both the Securities and Exchange Commission and Commodity Futures Trading Commission would operate with minimum staff.” Interestingly, the US government succeeded in dodging the shutdown by approving an interim measure to fund services until Nov. 17. Multiple news sources reported an 88-9 Senate vote in favor of the preventive measure, subsequently signed into law by U.S. President Joe Biden.
Published At
10/2/2023 9:01:05 PM
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