Just-In: VanEck Announces Ethereum Futures ETF in US

On September 28th, the investment management firm VanEck revealed plans to introduce the VanEck Ethereum Strategy ETF (EFUT). This actively managed ETF aims to harness capital appreciation by focusing on Ethereum (ETH) futures contracts.

VanEck ETF to Invest in ETH Futures

VanEck’s head of active trading, Greg Krenzer, will manage the ETF, which will be listed on the CBOE. However, it’s crucial to note that EFUT will not directly invest in ETH or other digital assets. Instead, it will allocate funds to standardized, cash-settled ETH futures contracts. These contracts will be sourced exclusively from commodity exchanges that have received approval from the Commodity Futures Trading Commission (CFTC). The fund plans to invest solely in ETH futures traded on the Chicago Mercantile Exchange.

This strategic move by VanEck follows the launch of its VanEck Bitcoin Strategy ETF (XBTF). The firm has committed to providing regular updates on the launch through its official X account, formerly known as Twitter.

SEC Delays Decisions on Various Crypto ETFs

The announcement comes amidst a series of delays by the Securities and Exchange Commission (SEC) in approving Bitcoin and Ethereum ETFs. Grayscale Bitcoin Trust (GBTC) had previously applied to create an ETF, which was subsequently rejected by the SEC. Grayscale then resubmitted a second proposal, incorporating distinct regulatory strategies to enhance the probability of approval.

In August 2023, a court-mandated the SEC to reassess Grayscale’s application. The court emphasized the necessity for a more rational decision-making process, a directive that was met with dissatisfaction by Grayscale executives. Moreover, the SEC has also postponed a decision on VanEck’s proposed spot ether fund, the VanEck Ethereum ETF. 

Also Read: Ethereum Price Prediction As The SEC Delays Decisions On ETFs From Ark, VanEck