Volatility Shares, a monetary agency providing a spread of exchange-traded fund (ETF) merchandise, canceled its plans to launch an Ether (ETH) futures ETF on Oct. 2, citing modifications in the market.
In an electronic mail with Cointelegraph, the firm’s co-founder and president, Justin Young, confirmed the cancellation:
“You are correct — we did not launch today. We didn’t see the opportunity at this point in time.”
However, when requested if the firm nonetheless deliberate to launch an ETH futures ETF at a later date, Young responded, “Of course,” including that “plans are TBD.”
Ether futures ETFs monitor the costs of ETH futures contracts — agreements to commerce the asset at a particular time and value in the future. Essentially, they permit traders to be concerned in ETH buying and selling with out having to truly maintain any of the cryptocurrency.
Related: SEC continues to delay decisions on crypto ETFs: Law Decoded
Volatility Shares was beforehand positioned to be the first agency to supply an ETH futures ETF. The United States Securities and Exchange Commission was anticipated to approve the first such product on Oct. 12, however considerations over the beforehand impending Oct. 1 U.S. authorities shutdown reportedly prompted the SEC to maneuver the timeline for approval up.
As of Oct. 2, a number of companies have begun buying and selling ETH futures ETFs, together with Valkyrie, VanEck, ProfessionalShares and Bitwise.
Pretty meh quantity for the Ether Futures ETFs as a gaggle, a little bit beneath $2m, about regular for a brand new ETF however vs $BITO (which did $200m in first 15min) it’s low. Tight race bt VanEck and ProfessionalShares in the single eth lane. pic.twitter.com/F9AHtrVcVf
— Eric Balchunas (@EricBalchunas) October 2, 2023
As Cointelegraph’s Turner Wright recently wrote, “Bills for the good or ill of digital assets would be halted amid a shutdown, and financial regulators, including the Securities and Exchange Commission and Commodity Futures Trading Commission, would be running on a skeleton crew.”
In a twist, the U.S. authorities managed to keep away from the shutdown by passing a stopgap measure to maintain companies funded by means of Nov. 17, with the Senate voting 88-9 to cross the measure. U.S. President Joe Biden signed it into legislation instantly.
