The launch of EFUT marks the company’s second foray into the futures ETF market.
US-based investment manager VanEck has officially announced the launch of the long-awaited ethereum (Ether) futures exchange-traded fund (ETF), exposing traditional investors to the world of cryptocurrencies.
According to a ethereum-Futures-ETF-Structured-as-a-C-Corp” target=”_blank” rel=”nofollow noopener”>Press release On Monday, the fund named VanEck ethereum Strategy ETF (CBOE: EFUT) is structured as a C corporation. The investment vehicle is designed to be the only ETF focused on eth futures, which could offer tax advantages to long-term investors. term.
However, it is essential to note that the newly launched fund does not directly invest in cryptocurrencies such as Ether or other digital assets. Instead, its value is derived from investments in eth futures contracts.
New VanEck ETF to Trade on CBOE
On September 28, the company posted commercials for two ETFs, including EFUT, giving investors a glimpse of the new funds. One of the TV ads posted on X (formerly Twitter) conveyed a clear message that EFUT was on the horizon.
When you are ready, ENTER THE ETHER. The VanEck ethereum Strategy ETF ($EFUT) is coming soon. Read our press release: https://t.co/4QPOVd5nB2 pic.twitter.com/vSF3HzMuvC
—VanEck (@vaneck_us) September 28, 2023
At the time, Bloomberg ETF analysts Eric Balchunas and James Seyffart predicted the investment vehicle would launch on October 2, and as anticipated, the funds debuted today.
VanEck stated that EFUT will invest in standardized, cash-settled eth futures contracts traded on commodity exchanges registered with the Commodity Futures Trading Commission (CFTC).
The $77.8 billion asset manager also mentioned that the ETF product will be available for trading on the Chicago Board Options Exchange (CBOE), managed by Greg Krenzer, head of active trading at VanEck, with more than two decades of experience.
The company’s head of product management, Ed Lopez, emphasized the importance of experience in selecting a fund manager, highlighting the company’s long history of investing in global markets.
“Experience matters when selecting a fund manager, and VanEck has a long history of investing in global markets and different market cycles. Our legacy of offering investors access to important new segments of the capital markets continues with the launch of EFUT. “We are very excited to bring this new ETF to the market and provide a key component for a diversified portfolio of digital assets for individuals and advisors,” said López.
This is not VanEck’s first ETF product.
The launch of EFUT marks the company’s second foray into the futures ETF market. In 2021, VanEck introduced the VanEck bitcoin (btc) Strategy ETF (XBTF), an investment vehicle designed to provide exposure to bitcoin futures contracts. Like EFUT, XBTF is also structured as a C corporation, and it is essential to understand that neither XBTF nor EFUT invest directly in btc or other digital assets.
Meanwhile, the launch of the VanEck ETF comes at a time when interest in ethereum-based ETFs has increased. Earlier this year, numerous US financial services companies filed applications with the Securities and Exchange Commission (SEC) to offer their clients the opportunity to explore the cryptocurrency market.
Some of the companies that have filed include Bitwise ethereum Strategy ETF, Roundhill Ether Strategy ETF, ProShares Short Ether Strategy ETF, ProShares Ether Strategy ETF, and Grayscale ethereum Futures ETF.
next
Chimamanda is a cryptocurrency enthusiast and an experienced writer focusing on the dynamic world of cryptocurrencies. She joined the industry in 2019 and has since developed an interest in the emerging economy. She combines her passion for blockchain technology with her love of travel and food, bringing a fresh and engaging perspective to her work.
