VanEck Prepares to Launch Ethereum Strategy ETF in CBOE
Popular investment management firm VanEck has announced its plans to roll out its Ethereum futures exchange-traded fund (ETF).
As per the official press release issued earlier today, the fund, called the VanEck Ethereum Strategy ETF (EFUT), will primarily invest in standardized, cash-settled ETH futures contracts.
These contracts are traded on commodity exchanges licensed with the Commodity Futures Trading Commission (CFTC).
The fund will focus on ETH futures traded specifically on the Chicago Mercantile Exchange (CME).
Upon its launch, the ETF will be listed on the Chicago Board Options Exchange (CBOE) and become part of the investment manager's other futures ETF product, the VanEck Bitcoin Strategy ETF (XBTF).
Like XBTF, EFUT operates under a C-Corp structure, which can potentially enhance tax efficiency for long-term investors.
C-corps are legal structures for corporations in which the owners are taxed separately from the entity.
The two ETFs will provide investors with futures-focused exposure to key digital assets.
Over the past few weeks, investment management companies have sought regulatory approval from the Securities Commission Exchange (SEC) agency for spot ETH ETFs.
In June, Volatility Shares led the charge and was followed by other asset managers, including Bitwise, Grayscale, VanEck, Proshares, and Roundhill.
This slew of fillings with the SEC entailed plans to launch a version of strategy centered on the world's second-largest crypto asset, ETH.
However, like spot bitcoin ETF, the SEC has yet to approve applications, citing concern over market manipulation and investors' vulnerability.
In light of this uncertainty surrounding spot ETH ETFs, it appears that futures ETH ETFs have a higher likelihood of receiving
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