VanEck to Launch Ethereum (ETH) Futures ETF
Global investment firm VanEck is set to introduce an Ethereum (ETH) futures exchange-traded fund (ETF), as the first-ever US futures ETF based on the second-largest cryptocurrency looks promising.
In a statement released on Thursday, VanEck stated that the VanEck Ethereum Strategy ETF (EFUT) will not directly invest in Ethereum or other cryptocurrencies. Instead, it will invest in standardized, cash-settled ETH futures contracts traded on registered commodity exchanges.
The ETF, which will be listed on the Chicago Board Options Exchange (CBOE), plans to invest only in ETH futures traded on the Chicago Mercantile Exchange. However, a specific launch timeline was not provided.
SEC Approval for ETH Futures ETF
This announcement comes amidst reports that the US Securities and Exchange Commission (SEC) is ready to approve the first ETH futures exchange-traded fund. The SEC had previously approved a futures ETF based on Bitcoin (BTC) two years ago.
Analysts from Bloomberg ETF estimate that there is a 75% chance of approval for an ETH futures ETF this year due to a surge in applications to the SEC. They believe that the SEC’s stance towards cryptocurrencies is changing and that it would be difficult for them to deny Ethereum futures ETFs after approving Bitcoin futures ETFs.
Hot Take: VanEck Seeks to Tap into Growing Demand for Crypto Investment Products
Global investment firm VanEck has announced its plan to launch an Ethereum futures exchange-traded fund (ETF), providing investors with exposure to the second-largest cryptocurrency by market capitalization. This move comes as demand for crypto investment products continues to rise, with growing interest in Ethereum. VanEck’s Ethereum Strategy ETF (EFUT) will invest in cash-settled ETH futures contracts traded on registered commodity exchanges, offering investors a regulated and standardized way to gain exposure to Ethereum. With the US Securities and Exchange Commission reportedly ready to approve the first ETH futures ETF, VanEck is positioning itself to capitalize on the increasing popularity of Ethereum as an investment asset.
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