VanEck Launches Ethereum Strategy ETF on CBOE

This launch comes as several other Ether futures ETFs await SEC approval, with the SEC aiming to approve them before government closure.

VanEck Launches Ethereum Strategy ETF on CBOE
VanEck Launches Ethereum Strategy ETF on CBOE

On October 2, investment management firm VanEck will launch its Ethereum Strategy ETF, which is now listed on its website under the ticker EFUT and will be traded on the Chicago Board Options Exchange (CBOE).

The VanEck Ethereum Strategy exchange-traded fund (ETF) will seek capital appreciation by investing in Ether futures contracts; it has no direct exposure to ETH.

The fund will trade cash-settled ETH futures contracts on commodity exchanges regulated by the Commodity Futures Trading Commission.

VanEck also highlights the product’s “C-Corp” structure, which provides tax advantages to long-term investors relative to registered investment company structures.

The investment manager has been promoting the launch of the ETH spot ETF on its social media accounts over the past few days, along with the airing of two “Enter the Ether”-themed television advertisements.

VanEck also announced that it will donate 10% of all proceeds from its upcoming Ether Futures ETF over the next decade to Ethereum core developers.

As of the end of September 2023, 15 distinct ether futures ETFs from nine issuers were awaiting approval from the Comisión de Bolsa y Valores de Estados Unidos.

According to SEC sources cited by analysts, the SEC wanted to approve Ether futures ETFs before a potential U.S. government closure.

Similarly, Bitwise Asset Management confirmed that trading for its two Ether ETH futures exchange-traded funds (ETFs) would begin on October 2, giving investors access to ETH futures trading on the Chicago Mercantile Exchange.