July 16, 2024
Lackluster Debut: Ether Futures ETFs Generate Underwhelming $10 Million in First Week
Altcoins News

Lackluster Debut: Ether Futures ETFs Generate Underwhelming $10 Million in First Week

Six much anticipated exchange-traded funds (ETFs) with exposure to ether futures contracts got off to a less-than-stellar start in their first week of trading, bringing in just under $10 million.

Around the same period, a total of $7.5 million in outflows were recorded for all Ethereum goods.

The statistics, compiled by CoinShares, provided new evidence of a “malaise” hurting cryptocurrency, according to Reuters, “at a time when investors are fleeing risk amid economic gloom and war in Ukraine and the Middle East.”

The fact that ether prices have fallen more than 5% this month and that the market for cryptocurrencies as a whole has lost somewhere in the neighbourhood of $30 billion seems to support this opinion.

On the other hand, Treasury yields reached their highest point in years earlier this month, suggesting a trend of investors shunning higher-risk assets.

“The timing of the futures ETFs could hardly be worse,” stated Vetle Lunde, senior analyst at K33 Research (via Reuters).

The ProShares Bitcoin Strategy ETF, the first fund to track Bitcoin futures, brought in $570 million in October 2021, whereas the six aforementioned ether ETFs failed to reach $2 million on their first day.

Speaking to Reuters, chief investment officer at IDX Digital Assets Ben McMillan, stated that his firm was “positioning investments more defensively until there was more clarity around Federal Reserve policy and the likelihood of a recession.”

“Investors are battening down the hatches and looking at how to make their portfolios more defensive. Speculative assets — even with a compelling growth thesis — are just a much lower priority now,” he concluded.

Image: Wallpapers.com

Disclosure Statement: Miami Crypto does not take any external funding, or support to bring crypto news to the readers. We do not have any conflicts of interest while writing news stories on Miami Crypto.

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