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Launch of the ETH futures ETF is canceled by Volatility Shares, citing a lack of opportunity at this time.

The co-founder and president of the company, Justin Young, shared with Cointelegraph via email that they have postponed their plans to launch, with the specific date labeled as “TBD.”

Volatility Shares, a financial institution specializing in a variety of exchange-traded fund (ETF) offerings, has decided to cancel its intention to introduce an Ether futures ETF on October 2, citing shifts in market dynamics.

In correspondence with Cointelegraph, Justin Young, the company’s co-founder and president, officially confirmed the cancellation, stating, “You are absolutely correct — we did not initiate the launch today. We did not perceive the opportune moment for this endeavor at this juncture.”

Nevertheless, when questioned about the company’s future intentions regarding the launch of an ETH futures ETF, Mr. Young responded affirmatively, asserting, “Certainly,” and adding, “Our plans remain to be determined.”

ETH futures ETFs, in essence, monitor the price fluctuations of ETH futures contracts, which are contractual agreements to trade the cryptocurrency at specified future times and prices. Essentially, these instruments enable investors to participate in ETH trading without the necessity of holding the actual cryptocurrency.

Previously, Volatility Shares had positioned itself as the frontrunner to introduce an ETH futures ETF. The United States Securities and Exchange Commission had been poised to give its approval to the inaugural product on October 12. However, concerns stemming from the impending U.S. government shutdown on October 1 reportedly prompted the SEC to expedite the approval timeline.

As of October 2, multiple firms have initiated trading in ETH futures ETFs, including prominent names like Valkyrie, VanEck, ProShares, and Bitwise.

As recently noted by Cointelegraph’s Turner Wright, “The fate of digital assets, whether for better or worse, would have been at a standstill during a government shutdown. Regulatory bodies such as the Securities and Exchange Commission and the Commodity Futures Trading Commission would have operated with limited staff.”

In a surprising twist, the U.S. government managed to avert the shutdown by passing a temporary funding measure, ensuring continued services until November 17. The Senate overwhelmingly supported the measure with an 88-9 vote, and President Joe Biden promptly signed it into law.

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