The Volatility Shares 2x Ether Strategy ETF (ETHU) will become the first ethereum leveraged ETF to list on the Chicago Board Options Exchange (CBOE) before June 4, according to a disclosure in its website.
Leveraged trading allows investors to control positions larger than their initial deposit, magnifying their exposure to price movements. The platform provider lends the difference between the trade value and the investor's margin deposit.
There are already several ethereum futures ETFs 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 U.S. Securities and Exchange Commission (SEC) unexpectedly approved 19b-4 filings for eight eth spot ETFs last week.
When will ethereum ETFs launch?
The early launch of the ethereum leveraged futures ETF has reignited speculation about when the newly approved ETFs would begin trading.
Nate Geraci, President of ETF Store, x.com/NateGeraci/status/1795255561753424157″>saying Approval of ethereum ETF spot registration statements could happen in a few weeks or at most a few months. Geraci emphasized that given the groundwork already completed with the bitcoin and ethereum futures ETFs, the launch depends on the SEC's decision. He said:
“My expectation would be the next few weeks (or) 2-3 months at most. (In my opinion) the heavy lifting has already been done after the btc spot ETFs and eth futures ETFs. It's just a matter of how long the SEC wants to drag this out.”
James Seyffart, Bloomberg ETF Analyst x.com/BanklessHQ/status/1793794252562186392″>echoed this sentiment during a recent podcast appearance, noting 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 ETFs would begin trading before the US election in November.
Liam 'Akiba' Wright
Also known as “Akiba,” Liam is a reporter, editor, and podcast producer at CryptoSlate. He believes decentralized technology has the potential to bring widespread positive change.
