What You Need to Know:
Investment management firm, VanEck, is set to launch its Ethereum (ETH) Strategy ETF on Oct. 2. The ETF will trade on the Chicago Board Options Exchange (CBOE) and aims to generate capital by investing in ether futures contracts.
The Details:
The VanEck Ethereum Strategy ETF, listed under the ticker EFUT, will provide exposure to cash-settled ETH futures contracts traded on regulated commodities exchanges. It does not directly hold ETH.
In addition to its investment strategy, the ETF offers tax benefits to long-term investors due to its C-Corp structure, compared to registered investment company structures.
Eyes on ETH:
VanEck has been promoting the launch of its ETH spot ETF through social media advertising. Two TV commercials with an "Enter the Ether" theme have been running to generate buzz about the upcoming launch.
Furthermore, VanEck has pledged to donate 10% of all profits from its Ether futures ETF to Ethereum core developers over the next decade.
Competition Heats Up:
As of the end of September 2023, 15 different Ether futures ETFs from nine issuers were still awaiting approval by the U.S. Securities and Exchange Commission (SEC). Insiders have suggested that the SEC aims to approve Ether futures ETFs before an upcoming government shutdown.
Bitwise Asset Management, a competitor to VanEck, has confirmed that trading for its two Ether ETH futures ETFs will also begin on Oct. 2. Investors will have access to ETH futures trading on the Chicago Mercantile Exchange.
