VanEck to Launch Ethereum Strategy ETF with Pledged Donations to Ethereum Developers
Summary:
Investment management company VanEck is set to launch its Ethereum (ETH) Strategy ETF on October 2. The fund, listed under the ticker EFUT, will be traded on the Chicago Board Options Exchange (CBOE) and offer exposure to cash-settled ETH futures contracts. In addition, the firm has pledged to donate 10% of all profits from the Ethereum-based ETF to the cryptocurrency's core developers over the next decade.
VanEck, the renowned investment management company, is all set to launch its Ethereum (ETH) Strategy ETF, slated to trade from October 2. The ETF product, labeled EFUT, has been added to the company's site and plans are underway to debut trading on the Chicago Board Options Exchange (CBOE). The initiate, known as VanEck Ethereum Strategy exchange-traded fund (ETF), plans to gather capital by putting resources in Ether futures contracts, while excluding any direct ETH exposure. The fund aims at providing access to cash-settled ETH futures contracts, traded on CFTC-regulated commodities exchanges. VanEck supports the C-Corp structure of the ETF for its comparative tax benefits for long term investors as opposed to registered investment company structures.
VanEck's promotional efforts include subtle nudges on social media, with recent posts hinting at the launch of the ETH spot ETF, plus two captivating TV commercials themed "Enter the Ether." The investment management giant also pledged to contribute 10% of earnings from the prospective Ether futures ETF to Ethereum core developers over the ensuing decade. As per data in late September 2023, there are 15 other Ether futures ETFs from nine issuers pending approval from the SEC. Industry experts have revealed that the SEC plans to greenlight the Ether futures ETF prior to an approaching U.S. government shutdown.
Bitwise Asset Management also confirmed last week that its pair of Ether ETH futures ETFs will start trading on October 2, providing investors an entry into ETH futures transaction on the Chicago Mercantile Exchange.
Published At
10/2/2023 1:59:02 PM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.