VanEck Set to Launch Ethereum Futures ETF Despite SEC Delay
The race to dominate the ETF space is intensifying, and VanEck, a prominent asset management firm with $80 billion under its management, is making waves with its latest announcement. Despite the recent delay by the U.S. Securities and Exchange Commission (SEC) in deciding on spot Ethereum ETFs, VanEck plans to launch an Ethereum futures exchange-traded fund (ETF) called the VanEck Ethereum Strategy ETF (EFUT). The EFUT will primarily invest in standardized, cash-settled ETH futures contracts traded on registered commodity exchanges.
VanEck Dodges SEC’s Delay
In a significant move, VanEck has revealed its plans to introduce the EFUT. This move solidifies VanEck’s position in the crypto market as it continues to dominate in the ETF race. The EFUT will join VanEck’s successful venture, the VanEck Bitcoin Strategy ETF (XBTF), in its portfolio. It’s important to note that while XBTF and EFUT are associated with Bitcoin and Ethereum respectively, they do not directly invest in these digital assets.
This Christmas Might Be Bullish for VanEck
The SEC has granted a 45-day extension for the decision-making deadline on spot ETF applications submitted by Ark Invest and VanEck. The new decision date is set for December 26, 2023. However, there are indications that several Ethereum futures ETFs might be approved by the SEC as early as the following week. Bloomberg Intelligence analyst James Seyffart suggests that the SEC is keen on fast-tracking Ether futures ETFs based on information he received.
Furthermore, U.S. Representatives have written a letter urging the SEC Chairman to expedite the approval process for spot Bitcoin ETFs before a government shutdown.
Hot Take: VanEck’s Bold Move in the ETF Space
VanEck’s decision to launch an Ethereum futures ETF despite the SEC delay demonstrates their confidence in the crypto market. With $80 billion under its management, VanEck is positioning itself as a leader in the ETF race. This move could potentially lead to a bullish Christmas for VanEck if the SEC approves several Ethereum futures ETFs. As traditional finance entities continue to submit proposals, competition in the ETF space is heating up, and VanEck is making its mark.
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