VanEck Rolls Out First Ethereum Futures ETF Structured as C-Corp
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 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 sole ETF focused on ETH futures, potentially providing tax advantages for long-term investors.
However, it is essential to note that the newly launched fund does not directly invest in cryptocurrencies like Ether or other digital assets. Instead, its value is derived from investments in ETH futures contracts.
VanEck’s New ETF to Be Traded on CBOE
On September 28, the company released commercials for two ETFs, including EFUT, providing investors with 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’re 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 that the investment vehicle would be launched 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 significance of experience in selecting a fund manager, highlighting the firm’s long-standing history of investing across global markets.
“Experience matters when selecting a fund manager, and VanEck has a long history of investing across global markets and through different market cycles. Our legacy of offering investors access to important new segments of the capital markets continues with the launch of EFUT. We’re very pleased to be bringing this new ETF to market and to be providing a key building block for a diversified digital assets portfolio for individuals and advisors,”said Lopez.
Not the First ETF Product by VanEck
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’s essential to understand that neither XBTF nor EFUT directly invests in BTC or other digital assets.
Meanwhile, the launch of VanEck’s ETF comes at a time when interest in Ethereum-based ETFs has surged. Earlier this year, numerous financial services companies in the US filed applications with the Securities and Exchange Commission (SEC) to offer their customers an opportunity to explore the crypto market.
Some of the companies that have submitted applications include Bitwise Ethereum Strategy ETF, Roundhill Ether Strategy ETF, ProShares Short Ether Strategy ETF, ProShares Ether Strategy ETF, and Grayscale Ethereum Futures ETF.
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Chimamanda is a crypto enthusiast and 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 for travel and food, bringing a fresh and engaging perspective to her work.
