VanEck Unveils Intentions to Introduce Ethereum Futures Exchange-Traded Fund (EFUT)

Launch Ethereum Futures ETF

Renowned investment manager VanEck has unveiled its plans to launch an Ethereum Futures exchange-traded fund (ETF). Notably, this announcement comes shortly after reports that the US Securities and Exchange Commission (SEC) is expediting the approval process for certain Ether futures ETF applications in anticipation of a government shutdown.

VanEck is set to introduce the VanEck Ethereum Strategy ETF (EFUT), as revealed in a press release on Thursday. Unlike directly investing in Ether (ETH) or any cryptocurrency, EFUT derives its value from investments in Ether futures contracts. These contracts are binding agreements to buy or sell an asset at a predetermined price on a specified future date, and the ETF gains value by tracking their performance index.

VanEck specifies that EFUT will exclusively invest in regulated, cash-settled ETH futures contracts listed on commodity exchanges approved by the Commodity Futures Trading Commission (CFTC). The ETF will focus on ETH futures contracts traded on the Chicago Mercantile Exchange (CME) for its initial launch.

The management of the VanEck Ethereum Strategy ETF will be overseen by Greg Krenzer, a seasoned professional with over two decades of experience in asset trading and currently serving as the Head of Active Trading at the investment firm. Notably, this is not VanEck’s first foray into the futures ETF market; in 2021, the investment manager launched the VanEck Bitcoin Strategy ETF (XBTF), offering exposure to Bitcoin futures contracts.

The announcement from VanEck comes amid reports that the SEC is expediting the approval process for Ethereum futures ETFs. Analyst Eric Balchunas of Bloomberg, citing anonymous sources, indicated that the SEC has urged asset managers to update their Ether futures ETF filings promptly. The commission aims to clear some of these funds for launch by the upcoming Tuesday due to concerns about a potential government shutdown if certain spending bills are not approved by October 1.

VanEck’s move suggests that Balchunas’s information about the Ether ETF developments might be accurate. If so, investors can anticipate positive updates from other US asset managers involved in Ether futures ETFs, particularly Valkyrie Investments and Volatility Shares, which Balchunas has identified as potential front runners for SEC approval.

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Chi Do
Chi Do
Chi Do is a content writer at CoinMinutes, responsible for creating most of the content on the website, including news related to Bitcoin (BTC), Ethereum (ETH), Blockchain, Decentralized Finance (DeFi), and more. With a keen interest in cryptocurrencies since the 2020s, Chi has acquired extensive experience and knowledge in this field. Chi holds a Bachelor's degree in communication from Academy of Journalism and Communication in Vietnam.

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