Following the recent approval of spot Ether exchange-traded funds (ETFs) by the U.S. Securities and Exchange Commission (SEC), investment management company VanEck will begin trading its Ethereum Strategy ETF on October 2. Trading in this new product will be possible on the Chicago Board Options Exchange (CBOE), where it will be listed under the ticker EFUT.
The VanEck Ethereum Strategy ETF won’t invest directly in Ether (ETH), which is a crucial point to remember. It will instead make money by buying Ether futures contracts. These contracts are settled in cash, and they are traded on commodity exchanges under the jurisdiction of the Commodity Futures Trading Commission (CFTC). With this strategy, investors may follow changes in the price of Ether without directly holding any of the cryptocurrency.
One notable feature of the VanEck ETF is its corporate structure, referred to as a “C-Corp.” This structure offers potential tax benefits to long-term investors compared to other registered investment company structures.
VanEck has been actively promoting the launch of its Ethereum Strategy ETF on social media platforms. They have released two themed TV commercials under the slogan “Enter the Ether” to create awareness about the product.
Furthermore, VanEck has announced its intention to allocate 10% of the profits generated from the Ethereum Strategy ETF to support Ethereum core developers over the next decade. This move aligns with the broader crypto industry’s efforts to contribute to the development and growth of blockchain networks and ecosystems.
When you’re ready, ENTER THE ETHER. The VanEck Ethereum Strategy ETF ($EFUT) is coming soon. Read our press release: https://t.co/4QPOVd5nB2pic.twitter.com/vSF3HzMuvC
— VanEck (@vaneck_us) September 28, 2023
The launch of the VanEck Ethereum Strategy ETF comes at a time when the SEC has been reviewing multiple Ether futures ETF proposals. In late September 2023, 15 different Ether futures ETFs from nine issuers were awaiting approval. It was reported that the SEC was keen to approve these products before a potential U.S. government shutdown, highlighting the growing interest in crypto-based financial products.
Additionally, Bitwise Asset Management has also confirmed that trading for its two Ether ETH futures ETFs will begin on October 2. These ETFs will provide investors with access to Ether futures trading on the Chicago Mercantile Exchange (CME).
The launch of these Ether-related investment products underscores the increasing integration of cryptocurrencies into the traditional financial landscape and offers investors more options to participate in the crypto market through regulated and accessible avenues.
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