Volatility Shares Cancels ETH Futures ETF Launch Amid Crypto Price Uncertainty

Volatility Shares Cancels Ether Futures ETF Launch

On Oct. 2, Volatility Shares, a financial firm offering a range of exchange-traded fund (ETF) products, cancelled its plans to launch an Ether (ETH) futures ETF. This decision was made due to changes in the crypto market.

In an email with Cointelegraph, Justin Young – the company’s co-founder and president – confirmed the cancellation. When asked if the company still planned to launch an ETH futures ETF in the future, Young responded positively, saying “of course” and that “plans are TBD.”

Ether futures ETFs track the prices of ETH futures contracts – agreements to trade the asset at a specific time and price in the future. This allows investors to be involved in ETH trading without having to own any of the cryptocurrency.

U.S. Government Avoids Shutdown, Crypto Futures ETFs Approved

Volatility Shares was on track to become the first company to offer an Ethereum (ETH) futures exchange-traded fund (ETF). The United States Securities and Exchange Commission (SEC) had planned to approve the first such product on Oct. 12, but the potential U.S. government shutdown on Oct. 1 caused the SEC to advance the timeline for approval.

As of Oct. 2, several firms have started trading ETH futures ETFs, such as Valkyrie, VanEck, ProShares and Bitwise. According to Cointelegraph’s Turner Wright, “Bills for the crypto good or ill of digital assets would be put on hold during a shutdown, and financial regulators, including the SEC and Commodity Futures Trading Commission, would be operating with a minimal staff.”

In a surprising turn of events, the U.S. government was able to avoid the shutdown by passing a stopgap measure to keep services funded until Nov. 17. The Senate voted 88-9 to pass the measure, which was then signed into law by President Joe Biden.

The approval of crypto futures ETFs is a major step forward for the industry, allowing traders and investors to access real-time prices, alerts, and company information. Additionally, the new law ensures that the crypto industry will not be subject to any government-imposed regulations.