Volatility Shares plans to launch an ethereum futures ETF product. The proposed ethereum strategy ETF will invest in cash-settled ethereum futures contracts traded on the Chicago Mercantile Exchange (CME), and will not invest directly in ethereum (ETH).
Previously, Grayscale Investments, Bitwise and others abandoned plans to launch an ethereum futures ETF in May after the SEC asked. Industry participants cited concerns about the liquidity levels of ethereum futures and uncertainty about whether ethereum is a security or a commodity as potential reasons.
Last month, Volatility Shares launched its 2x Bitcoin Strategy ETF (BITX), the first leveraged Bitcoin futures ETF in the United States.