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In a groundbreaking move for the crypto industry, VanEck, Proshares, alongside others have officially launched their Ethereum (ETH) Futures Exchange Traded Funds (ETFs), marking the beginning of a new era in the crypto ETF market.
The announcement comes despite a string of delays by the Securities and Exchange Commission (SEC) in approving related Bitcoin ETFs.
VanEck’s Unique Ethereum ETF Approach
VanEck noted in its filing that its VanEck Ethereum Strategy ETF (CBOE: EFUT) is designed to seek capital appreciation by investing in Ethereum (ETH) futures contracts, offering investors a novel avenue to participate in digital assets.
EFUT primarily invests in standardized, cash-settled ETH futures contracts traded on commodity exchanges that are registered with the Commodity Futures Trading Commission (CFTC). Currently, the fund’s target is ETH futures traded on the Chicago Mercantile Exchange, one of the most reputable and regulated futures markets globally.
“Ether is the foundation of the decentralized applications ecosystem, and it plays a pivotal role in driving the growth of digital currencies, smart contracts, and more. With EFUT, investors can now access the dynamic futures market linked to Ethereum,” Kyle DaCruz, Director of Digital Asset Product with VanEck said in a statement.
ProShares, the pioneering firm behind the first U.S. Bitcoin futures ETF, also introduced the “ProShares Ether Strategy ETF.” This offering allows investors to gain exposure to the price performance of Ethereum futures contracts. In addition, ProShares has launched two other ETFs that combine both Bitcoin and Ethereum exposure.
A Landmark for Ether and the Crypto Market
The launch of these ETFs marks a watershed moment for the cryptocurrency industry, particularly for ETH, the second-largest crypto by market capitalization. These ETFs offer several advantages, including regulatory oversight, tax efficiency, and accessibility for traditional investors who may be cautious about direct crypto ownership.
While these Ethereum futures ETFs are making waves in the crypto space, they follow in the footsteps of Bitcoin futures ETFs. The launch of the first Bitcoin futures ETF in the United States in late 2021 by ProShares opened the door for investors to gain exposure to Bitcoin’s price movements through a regulated investment vehicle.
These ETFs are anticipated to be crucial in bridging the divide between the cryptocurrency world and conventional finance as the cryptocurrency sector continues to develop.
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