What Does Low Volume Mean for Ethereum Futures? Will the Market Rebound? Two Experts Answer

Ethereum is heading into a loss-making weekend despite the launch of several ETH futures Exchange Traded Funds (ETFs). The launches, which were expected to be a positive catalyst for the cryptocurrency market, were underwhelming, with first-day trading volume of less than $2 million across six different ETH ETFs.

Bitcoin, on the other hand, is on track for a 3% gain for the week.

Conor Ryder: “There’s Too Much Regulatory Uncertainty to Attract Institutional Capital”

Conor Ryder, director of research at stablecoin company Ethena Labs, noted that crypto markets are generally quick and optimistic when pricing in potentially positive news. However, according to the analyst, these forecasts are often overly optimistic and come too early:

“There is weak liquidity on both sides of the order books, so it is easy to move markets up with speculation, but there is also a lack of support on the downside, so prices often pull back quickly.”

The launch of ETH futures ETFs was expected to bring a new wave of capital into crypto as the next catalyst to stimulate the markets. However, the first day trading volume of these ETFs accounted for approximately 0.2% of the first day trading volume of the Bitcoin futures ETFs.

“After an apparent lack of demand for ETH futures ETFs, the bullish forecast may be too ambitious, and perhaps there is still too much regulatory uncertainty in crypto to attract a new wave of institutional capital,” Ryder added.

Enclave Markets CEO David Wells believes that despite current market conditions, cryptocurrencies are a good option for those who have a longer maturity horizon and believe in the utility of the underlying technology as a store of value. “As in previous cycles, sentiment can change rapidly with any positive developments, such as U.S. ETF approvals or regulatory developments in other countries,” Wells said.

*This is not investment advice.

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