VanEck Set to Launch First Ethereum ETF in the US
After years of waiting, the first Ethereum (ETH) exchange-traded fund (ETF) in the United States is finally set to hit the market. VanEck, an $80 billion asset manager, confirmed the upcoming launch of its VanEck Ethereum Strategy ETF (EFUT). This actively managed fund will invest in futures contracts for Ethereum. The fund will focus on standardized, cash-settled ETH futures contracts traded on commodity exchanges registered with the Commodity Futures Trading Commission (CFTC).
The shares for EFUT will be listed on the Chicago Board Options Exchange (CBOE). However, a specific listing date has not been provided by VanEck. Bloomberg ETF analysts Eric Balchunas and James Seyffart have predicted that a related product could go live by October 2 or 3.
Ether Futures ETFs May Trade as Early as Tuesday
According to a tweet by Eric Balchunas, Ether futures ETFs could start trading as early as Tuesday. This comes as the Securities and Exchange Commission (SEC) aims to expedite the process before a looming shutdown. Issuers are expected to update their documents quickly if this happens.
VanEck’s Struggle with Crypto ETFs
VanEck has faced challenges in registering crypto ETF products in the US. The SEC has been hesitant to approve these products, only allowing Bitcoin futures ETFs so far. The VanEck Bitcoin Strategy ETF launched in November 2021 and has accumulated $43.4 million in assets, significantly less than ProShares’ over $800 million holdings.
VanEck may gain a first-mover advantage with its Ethereum ETF as it leads a group of fourteen recent proposals to the SEC for similar products. However, crypto spot ETFs, which are backed by crypto assets instead of futures contracts, remain inaccessible to American investors. VanEck’s proposals for Bitcoin and Ethereum spot ETFs have been delayed by the SEC.
Hot Take: VanEck’s Ethereum ETF Marks a Milestone for Crypto
The launch of VanEck’s Ethereum ETF is a significant milestone for the cryptocurrency industry in the US. It represents a growing acceptance of Ethereum as a legitimate investment asset. With this development, investors will have an easier way to gain exposure to Ethereum through a regulated and accessible investment vehicle. This could potentially attract more institutional investors and pave the way for further adoption of cryptocurrencies in traditional finance. As the first mover in the Ethereum ETF space, VanEck has an opportunity to capture market share and establish itself as a leader in this emerging market.
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