Volatility Shares, a reputable financial enterprise prioritizing exchange-traded fund (ETF) products, recently made a surprising move – it cancelled plans to launch an Ethereum futures ETF. As declared by the company’s co-founder, Justin Young, the immediate opportunity for such an undertaking apparently seemed lacking. But fans of ETH may heave a sigh of relief, as hinted future launch plans remain in a thrilled state of “to be determined”.
The initial conception of the Ethereum futures ETF was quite a strategic one. It was designed to track the prices of Ethereum futures contracts, effectively allowing investors to participate in ETH trading without actually owning any Ethereum. However, in the fast-paced, unpredictable realm of crypto, changes in the market seem to have influenced the company’s decision to pause this initiative.
On the one hand, the cancellation offers Volatility Shares a chance to reassess the market and possibly improve on the already established initiative. On the other, it opens up the path for other companies to explore and venture into similar terrain. To support this, as of now, Valkyrie, VanEck, ProShares, and Bitwise have all begun trading in ETH futures ETFs.
But taking a broader gaze, this points to a changing landscape in the crypto world. The initial expectation for the Securities and Exchange Commission (SEC) to approve the first ETH futures ETF was on Oct. 12. However, the looming uncertainties surrounding the US federal government’s imminent shutdown pushed the approval timeline. Yet, as though epitomizing the unpredictability of the crypto world, the government successfully avoided the shutdown by passing a measure to fund services until Nov. 17.
Conclusively, the journey endured by the Ethereum futures ETF, as engineered by Volatility Shares, lends itself to several interpretations. Still, amidst all of them, two things are clear – the adaptability of crypto-based companies such as Volatility Shares and the excitement surrounding proposed projects like the Ethereum futures ETF. The intertwining of these factors have had profound effects, rippling out across the industry and shaping the future of how we trade.
Source: Cointelegraph
