Ethereum futures ETFs launch, begin trading in the U.S.
Ethereum (ETH-USD) futures ETFs have begun trading in the U.S. for the first time. Yahoo Finance Live co-hosts Josh Lipton and Julie Hyman monitor the price action in the crypto space, including bitcoin (BTC-USD), after the issuance of several ethereum futures ETFs.
For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.
Video Transcript
JOSH LIPTON: The ProShares, VanEck, and Bitwise all launching their products. This coming as Grayscale files for approval to convert its Ethereum trust into a spot Ethereum exchange-traded fund. So this is interesting, Julie.
So we've had, of course, Bitcoin futures ETFs for a while now. Of course, those made their debut during a very different time in the world of crypto. Bitcoin was a lot higher. Now we have these Ethereum-themed ETFs.
I'll be very interested what demand is like. And to the extent there is demand, where does it come from? Does it come from retail investors, Julie, Josh, friends, and family, or is this, to the extent again that we see it, is it more of a financial advisor product? This is something they want to buy their customers.
JULIE HYMAN: I'm not clear on the answers to any of these questions, right, because on the one hand, you have the SBF trial that is set to begin, that defenders of crypto would say, well, you get fraud in any asset class. This is not unique to crypto. Critics of crypto would say that there are qualities of cryptocurrencies that make it especially susceptible to fraud. In part, one of them being that it is not as regulated as other types of asset classes. So that debate rages on in the background, even as we get approval and beginning of trading of these new products.
So it's an interesting time, if you will. At the same time, we see Bitcoin up today, right? We see some buying again, even as the SBF trial is set to begin.
Ethereum, though, is trading lower. So all of these products are also under pressure in today's session. So it's unclear exactly what the situation will bring. I should also mention real quickly, Grayscale Investments is also now applied to have its Ethereum trust converted into an ETF. And of course, it's been on that similar quest with its Bitcoin ETF.
JOSH LIPTON: Bitcoin, we just showed there. So near 28,000. It has rebounded strongly. But of course, way off that record of $69,000.
I thought it was very interesting too, Julie, just what venture investors are doing right now. So these are obviously the men and women that are writing all those checks to those private companies. And this courtesy of Bloomberg, VC deals targeting cryptocurrency and blockchain projects have shrunk to about $7 billion in total this year. That is about, Julie, a quarter of the full year tally in each of 2021 and 2022. So bottom line, VCs tightening their purse strings a bit here.
JULIE HYMAN: Again, you have that at the same time that the likes of Coinbase are in DC still really taking their case to regulators.
JOSH LIPTON: So much enthusiasm for those spot Bitcoin ETFs, right? That is really-- from at least the crypto fans.
