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2x Ether ETF Arrives in US, Stealing Spotlight from Traditional Spot Options

Shalini Nagarajan
Last updated: | 1 min read
Spot Ether ETF

US investors can now access funds that track double the daily movement of Ethereum. However, a spot Ether ETF still awaits full regulatory approval.

Volatility Shares launched ETHU, a 2x Ether ETF, on June 4th. This offering targets daily returns that are twice Ether’s daily movements, but before fees of 0.94%.

Meanwhile, ProShares announced plans to list two new ETFs on the New York Stock Exchang on June 7. One (ETHT) will target double the daily gains of Ethereum, while the other (ETHD) will do the same for price drops.

These ETFs can be traded because they do not directly invest in Ether. Instead, they utilize derivatives such as futures contracts to fulfill their investment goals.

Approved Spot Ether ETFs Need Final Registration Before Trading

ETHU’s launch comes shortly after the Securities and Exchange Commission (SEC) granted its initial endorsement for eight spot ETFs that directly invest in Ether.

The SEC’s approval of these ETFs comes just four months after the first Bitcoin ETFs were greenlit, showcasing a swift change in regulatory stance. Notably, Hashdex was the only applicant not approved in this recent wave

Even though these Ether ETFs are initially approved, the exchanges and providers need to clear a final hurdle. They must file registration statements with the SEC, providing investors with crucial details about the product.

Bloomberg ETF analyst Eric Balchunas predicts a potential launch for these Ether ETFs by mid-June. He anticipates a streamlined approval process similar to the recent Bitcoin ETFs, with just one round of regulatory feedback needed.