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>>Ethereum futures exchange-traded funds witnessed increased trading volume on Monday, ahead of expected approval for physically settled Ethereum futures by the Commodity Futures Trading Commission.

Ethereum futures exchange-traded funds witnessed increased trading volume on Monday, ahead of expected approval for physically settled Ethereum futures by the Commodity Futures Trading Commission.

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1/24/2025, 11:53:00 AM

Ethereum Futures ETFs See Unprecedented Volume

The day before witnessed a remarkable surge in trading activity for Ethereum futures exchange-traded funds (ETFs), driven by heightened anticipation of potential approval from the U.S. Securities and Exchange Commission (SEC). On Tuesday, Ethereum futures ETFs recorded a substantial $47.75 million in trading volume, representing a 40% increase from their previous record. This growth built upon a significant jump of $23.67 million recorded on Monday.

Dominance of ProShares' EETH ETF

Within this category, ProShares’ Ether Strategy ETF (EETH) demonstrated overwhelming dominance, accounting for an astonishing $43.14 million or 90% of Tuesday's trading volume. VanEck’s Ethereum Strategy ETF (EFUT) and Bitwise’s Ethereum Strategy ETF (AETH) followed with $2.6 million and $2.01 million, respectively, showcasing the significant market share held by EETH.

Comparative Volume with Bitcoin ETFs

Despite this milestone, the trading volume for Ethereum futures ETFs, launched in October 2023, remains modest when compared to spot Bitcoin ETFs. The latter, which debuted in January, achieved a combined trading volume of $2.16 billion on Tuesday, led by BlackRock’s IBIT with $1.12 billion. This disparity highlights the continued dominance of Bitcoin in the ETF space.

Grayscale’s ETHE Trust Experiences Surge

Additionally, Grayscale’s Ethereum Trust (ETHE) witnessed a notable increase in trading volume on Tuesday, reaching $684.44 million—its highest since its all-time high in May 2021. The trust's discount to net asset value narrowed to -6.7%, marking its lowest level in over two years and fueling investor optimism.

SEC Approval Odds and Market Impact

The SEC’s recent request for exchanges to expedite spot Ethereum ETF filings has heightened expectations of approval before the upcoming deadline. Analysts Eric Balchunas and James Seyffart from Bloomberg have raised their approval odds to 75%, while ETF Store president Nate Geraci stresses the importance of dual regulatory approvals for ETF launches. This potential approval is considered a significant shift in U.S. crypto policy.

Predictions and Price Movement

Standard Chartered maintains its bullish prediction of $8,000 for Ethereum (ETH) by 2024, attributing it to the increasing likelihood of ETF approvals. The bank forecasts a high confidence level of 80% to 90% for these ETFs launching in the U.S. this week. This could lead to substantial inflows, potentially reaching $15 billion to $45 billion in the first year. The renewed optimism surrounding spot Ethereum ETFs has contributed to a 20% price increase for Ether since Monday, pushing its value to around $3,792 at the time of writing. As per Coinmarketcap, ETH was trading at $3,741 as of the last update.