SEC Opens Floodgates to Ethereum Futures ETFs
This article was originally published on ETFTrends.com.
When it rains it pours. VanEck announced Thursday that its proposed ethereum futures ETF is set to debut soon. The VanEck Ethereum Strategy ETF (EFUT) is set to begin trading on the Cboe Exchange on Monday, October 2.
But it won’t be the only ethereum futures ETF to launch early next week. Since the announcement, the New York Stock Exchange has announced the imminent launch of multiple crypto futures ETFs that target ethereum or combine exposure to ethereum and bitcoin. This includes three new ETFs from ProShares and two from Bitwise, all set to begin trading on Monday.
NYSE will list the ProShares Ether Strategy ETF (NYSE Arca: EETH), the ProShares Bitcoin & Ether Market Cap Weight Strategy ETF (NYSE Arca: BETH), and the ProShares Bitcoin & Ether Equal Weight Strategy ETF (NYSE Arca: BETE) on Monday. The Arca platform will also begin trading the Bitwise Ethereum Strategy ETF (NYSE Arca: AETH) and the Bitwise Bitcoin and Ether Equal Weight Strategy ETF (NYSE Arca: BTOP) next week.
And that’s not all. Valkyrie also received approval to add ether futures to its BTF ETF. Hashdex and Volatility Shares also have futures-based ethereum ETFs in the works that could launch soon. Invesco also has an ethereum ETF in the works that will invest in futures on the cryptocurrency. However, Invesco’s forthcoming fund is not structured as a '40 Act fund.
See more: “VanEck Ethereum Futures ETF Could Launch Soon”
Clearing Their Desks Ahead of a Possible Shutdown
VettaFi’s associate director of research Roxanna Islam said the SEC could be approving ethereum futures ETFs before a government shutdown.
“The SEC has been clearing their desks ahead of the possible government shutdown,” she said. “This means issuing delays for spot bitcoin ETF filings while likely allowing ether future ETFs to potentially begin trading early next week.”
Gaining Ether Exposure Through Futures Contracts
Per VanEck, the actively managed EFUT, which is structured as a C-Corp, will not invest directly in ether. Instead, it will get its exposure to the cryptocurrency primarily through futures contracts.
VanEck is up against several firms that have also already filed for ETFs investing in ethereum futures. This also includes Grayscale, Roundhill, and Direxion, among others. It should be noted, however, that as of this writing, Grayscale, Roundhill, and Direxion have yet to update their filings.
VanEck already offers the VanEck Bitcoin Strategy ETF (XBTF), which is similar to EFUT in that it provides exposure to the price of the bitcoin cryptocurrency via futures contracts.
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