The Future of Crypto ETF’s are here with VanEck diving into the space.
On October 2, 2023, VanEck launched the VanEck Ethereum Strategy ETF (EFUT), becoming the first US investment manager to bring an Ethereum futures-based ETF to market. The ETF tracks the CME CF Ether Reference Rate Index, which is based on the price of Ether futures contracts traded on the Chicago Mercantile Exchange (CME).
EFUT is a significant development for the cryptocurrency industry, as it provides investors with a more accessible and regulated way to gain exposure to Ethereum. ETFs are typically traded on traditional exchanges like the New York Stock Exchange (NYSE) or Nasdaq, making them more familiar and accessible to retail investors than investing directly in cryptocurrency.
Key Stats
- Expense ratio: 0.66%
- Structure: C-Corp
- Listing exchange: CBOE
- Ticker symbol: EFUT
Information
- EFUT invests in Ethereum futures contracts traded on the CME, which are cash-settled. This means that investors do not actually receive Ethereum tokens, but rather cash payments based on the price of Ethereum at the time the contract expires.
- EFUT is structured as a C-Corp, which means that it will be required to pay taxes at the fund level. This is in contrast to a pass-through structure, where taxes are paid by the investors at their individual tax rates.
- EFUT is listed on the CBOE, which is one of the largest exchanges in the world. This gives investors access to a deep and liquid market for trading the ETF.
Other Pending Crypto ETFs
In addition to EFUT, there are a number of other cryptocurrency ETFs that are pending approval from the US Securities and Exchange Commission (SEC). Some of the most notable include:
- ProShares Bitcoin Strategy ETF
- Invesco Bitcoin Strategy ETF
- Bitwise Bitcoin Strategy ETF
- Valkyrie Bitcoin Strategy ETF
- Galaxy Bitcoin Strategy ETF
- Monochrome Bitcoin ETF (Australia)
It is expected that the SEC will approve more cryptocurrency ETFs in the coming months, as the agency has signaled a greater openness to the asset class.
Impact
The launch of EFUT is a major milestone for the cryptocurrency industry, as it provides investors with a more accessible and regulated way to gain exposure to Ethereum. It is also likely to pave the way for more cryptocurrency ETFs to be approved by the SEC in the coming months.
The launch of EFUT is also expected to have a positive impact on the price of Ethereum, as it will increase demand for the asset from institutional investors. Additionally, the ETF could help to legitimize Ethereum as an asset class and make it more attractive to mainstream investors.
The launch of EFUT is a positive development for the cryptocurrency industry and for Ethereum investors in particular. It is a sign that the industry is maturing and that institutional investors are becoming more comfortable with cryptocurrency.
