Nine Ethereum-based ETFs, including Ether Futures, made their debut on the U.S. market this Wednesday. The ETFs were introduced by leading firms and Brazilian fund manager Hashdex on the CBOE. Despite the promising start, these ETFs underperformed in trading volume, according to Bloomberg's Eric Balchunas.
Among these newly launched ETFs, VanEck Ethereum Strategy ETF (EFUT) led the Ether futures ETF activity with $15.6 million in fund inflows, outperforming ProShares. Ether futures began trading in the US on Sunday, October 2nd with EFUT, AETH, BTOP, and three Proshares funds. Nevertheless, Financial Times reported a $6.6 million trading volume on Monday, potentially influenced by Sam Bankman-Fried's trial in New York.
Contrastingly, ProShares Bitcoin Strategy ETF (BITO) recorded impressive figures with $200 million in trading volume within minutes of launch. According to InvestingPro data, BITO has an adjusted market cap of 912.85M USD and a dividend yield of 6.4% as of 2023. It's worth noting that BITO has shown a significant total return of 57.3% YTD, despite a 6.73% dip in the last six months. The price of BITO at the previous close was 13.88 USD.
In addition to the performance of these ETFs, Balchunas highlighted key dates for the crypto market: The SEC's October 13 deadline to appeal the Grayscale ruling and the delay of all spot ETF filings until January 3.
The SEC recently delayed decisions on spot bitcoin filings and required issuers to address their S-1 filings. This move could potentially impact the future of cryptocurrency-based ETFs and their performance in the market.
While BITO has shown promising returns, InvestingPro Tips suggest that the company suffers from weak gross profit margins and its valuation implies a poor free cash flow yield. However, it does pay a significant dividend to shareholders, which is a positive aspect for investors looking for income. For more in-depth analysis and tips, consider checking out InvestingPro where you can access many more insights like these.
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