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 funds (ETFs), introducing traditional investors to the world of cryptocurrencies.
according to a Press release On Monday, the fund, called VanEck Ethereum Strategy ETF (CBOE: EFUT), was structured as a C-corporation. The investment vehicle is designed as a sole ETF focused on ETH futures, potentially offering tax benefits for long-term investors.
However, it is important 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 will be traded on CBOE
On September 28, the company released advertisements for two ETFs, including EFUT, giving investors a glimpse of the new fund. One of the TV commercials posted on X (formerly Twitter) gave a clear message that EFUT was on the horizon. underlying
At the time, Bloomberg ETF analysts Eric Balchunas and James Seifert predicted the investment vehicle would launch on October 2, and, as anticipated, the fund launched today.
VanEck said 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 noted that the ETF product will be available for trading on the Chicago Board Options Exchange (CBOE), which will be 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, stressed the importance of experience in selecting a fund manager, highlighting the company’s long-term 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 through different market cycles. Our legacy of providing investors access to important new areas of the capital markets continues with the launch of EFUT. We are very pleased to bring this new ETF to market and provide an important building block for a diversified digital asset 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 VanEck Bitcoin (B T c) 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 important to understand that neither XBTF nor EFUT invests directly in BTC or other digital assets.
Meanwhile, the launch of VanEck’s ETF comes at a time of increased interest in Ethereum-based ETFs. Earlier this year, several financial services companies in the US filed a regulatory filing with the Securities and Exchange Commission (SEC).seconds) Providing its customers with the 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.
Chimamanda is a crypto enthusiast and experienced writer who focuses on the dynamic world of cryptocurrencies. She joined the industry in 2019 and has since developed her interest in emerging economies. She combines her passion for blockchain technology with her love for travel and food, bringing a new and fascinating perspective to her work.
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