VanEck Launches Ethereum Strategy ETF (EFUT) Based on ETH Futures Contracts
VanEck, an investment management firm, has recently introduced its new Ethereum Strategy ETF (EFUT), which is focused on Ethereum futures contracts. The fund provides targeted exposure to ETH futures contracts traded on exchanges registered with the Commodity Futures Trading Commission (CFTC). Unlike directly investing in Ethereum (ETH), EFUT invests in standardized and cash-settled ETH futures contracts. The fund specifically aims to invest in ETH futures contracts traded on the Chicago Mercantile Exchange. EFUT is listed on VanEck’s website with the ticker EFUT and will be traded on the Chicago Board Options Exchange (CBOE).
Kyle DaCruz, product director for digital assets at VanEck, commented:
“Ethereum is the layer 1 building block of the decentralized applications ecosystem, driving innovations in digital currencies, global payments, smart contracts and much more, with Ethereum as the platform’s method of exchange. While investors still do not have the means to gain exposure to digital assets here in the U.S. via a spot ETF product, we’re very pleased to be launching EFUT as a means to access the robust futures market that has developed around ETH itself.”
The unique feature of VanEck’s Ethereum Strategy ETF is that it is structured as a C-Corp, potentially providing a more tax-efficient experience for long-term investors. This follows the launch of VanEck’s Bitcoin Strategy ETF (XBTF), which also offers futures exposure to Bitcoin and is structured as a C-Corp. The SEC approved VanEck’s application for an Ethereum futures ETF after receiving applications from other companies such as ProShares, Bitwise, and Roundhill. This approval comes after the SEC has already approved ETFs based on Bitcoin price futures contracts since 2017.
Hot Take: VanEck Expands Crypto ETF Offerings with Ethereum Strategy ETF
VanEck’s launch of the Ethereum Strategy ETF (EFUT) demonstrates the growing demand for crypto-focused investment products. With the popularity of Ethereum and its role in driving innovations in digital currencies and smart contracts, investors now have another avenue to gain exposure to this market through ETH futures contracts. The approval of VanEck’s application by the SEC further solidifies the legitimacy and acceptance of crypto-related financial instruments. As the crypto market continues to evolve, it is likely that we will see more ETFs and investment products targeting various cryptocurrencies, providing investors with diverse options to participate in this emerging asset class.
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