{"id":194669,"date":"2023-10-06T19:39:38","date_gmt":"2023-10-06T19:39:38","guid":{"rendered":"https:\/\/tokenstalk.info\/?p=194669"},"modified":"2023-10-06T19:39:38","modified_gmt":"2023-10-06T19:39:38","slug":"coinbase-research-head-analyzes-lackluster-debut-of-eth-futures-etfs-in-the-us-market","status":"publish","type":"post","link":"https:\/\/tokenstalk.info\/bitcoin\/coinbase-research-head-analyzes-lackluster-debut-of-eth-futures-etfs-in-the-us-market\/","title":{"rendered":"Coinbase Research Head Analyzes Lackluster Debut of ETH Futures ETFs in the US Market"},"content":{"rendered":"
On 6 October 2023, David Duong, the Head of Coinbase Research, shared insights on LinkedIn regarding the underwhelming market response to the newly launched ETH futures ETFs in the United States. According to Duong, these ETFs failed to generate the same level of excitement and trading volume as the first BTC futures ETF, ProShares\u2019 BITO, which debuted in October 2021.<\/p>\n
Duong pointed out that the top ETH futures ETFs collectively saw less than $1.5 million in trading volume on their first day. In stark contrast, BITO experienced over $1 billion in trading volume on its inaugural day, as per Bloomberg data. Additionally, the net inflow into these ETH futures ETFs was less than 2% of what BITO attracted.<\/p>\n
Duong also touched upon the increasing worries about the impact of rising long-end US Treasury yields on long-duration assets like equities and cryptocurrencies. He argued that the concern is less about the absolute levels of these yields and more about their volatile nature.<\/p>\n
According to Duong, the correlation between BTC returns and U.S. equity returns, as indicated by the S&P 500, has been gradually increasing. He noted that since mid-September, this correlation has moved from 0.16 to 0.32, based on a 60-day rolling window. Duong believes that the market\u2019s anticipation of spot Bitcoin ETFs in the fourth quarter of 2023 is currently providing a safety net for BTC prices.<\/p>\n
Duong concluded by mentioning that crypto-friendly regulatory news, such as the court\u2019s rejection of the SEC\u2019s appeal in the Ripple case, is supporting BTC prices. However, he also cautioned that there remains a non-zero risk of increased short-term volatility for digital assets, which could also impact equities.<\/p>\n