Summary
TLDR: While spot ether ETFs face uncertainty, issuers plan to launch leveraged ether futures ETFs. Volatility Shares, ProShares, and Defiance are all working on funds that seek to generate two times the performance of ETH through ether futures contracts. These leveraged ETFs may be approved before spot products due to dwindling chances of spot ETF approval in May. The proposed funds do not directly invest in ether and aim to provide exposure through ether futures contracts and swap agreements. Industry experts are skeptical about the demand for leveraged ether futures ETFs given the lukewarm response to existing ETH futures funds. Investors may prefer spot ETFs for pure exposure to ether before considering leveraged products.
Key Points
1. Issuers are planning to launch other types of ETH funds, such as leveraged funds that hold ether futures contracts.
2. The proposed leveraged ether futures ETFs do not directly invest in or short ether, but instead invest in cash-settled ether futures contracts and enter into swap agreements providing exposure to ether.
3. The SEC is set to rule on spot ether funds in May, but the chance of approval by that time appears to be dwindling.