VanEck to Launch Ethereum Futures ETF
Investment management firm VanEck has announced its plans to launch the VanEck Ethereum Strategy ETF (EFUT), which will primarily invest in standardized, cash-settled ETH futures contracts. The fund will focus on ETH futures traded specifically on the Chicago Mercantile Exchange (CME). It will be listed on the Chicago Board Options Exchange (CBOE) alongside the VanEck Bitcoin Strategy ETF (XBTF). Both ETFs operate under a C-Corp structure, offering potential tax efficiency for long-term investors.
Spot ETH ETF Uncertainty May Boost Futures ETH ETF
While investment management companies have been seeking regulatory approval for spot ETH ETFs, the Securities and Exchange Commission (SEC) has yet to approve any applications. This uncertainty surrounding spot ETH ETFs may increase the likelihood of futures ETH ETFs being approved. Futures ETFs would invest directly in futures contracts traded on the CME, providing investors with protection against market manipulation. Reports suggest that the SEC may begin approving Ether futures ETFs in early October, generating significant interest among asset managers.
Hot Take: Potential Approval of ETH Futures ETFs
According to Bloomberg’s Intelligence analyst James Seyffart, there is a heightened probability of the SEC approving ETH futures ETF applications. Seyffart suggests that multiple ether futures ETF filings have been acknowledged by the SEC, indicating an accelerated approval process. This increased activity may be due to an impending government shutdown if Congress fails to reach an agreement or establish a funding strategy for the new fiscal year. Clarity regarding the approval of ETH futures ETFs is expected in the coming days.
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