There’s no stopping the flood of Ethereum-linked ETFs being launched today. VanEck is launching the VanEck Ethereum Strategy ETF (EFUT) on the Cboe Exchange. The new actively managed ETF aims to seek capital appreciation by investing in ether futures contracts.
EFUT provides focused exposure to ether futures. The press release announcing the launch notes the fund’s structure is C-Corp. This could potentially offer a more efficient tax experience for long-term investors.
Although EFUT does target ether futures contracts, VanEck noted that the fund does not directly invest in ether or other digital assets. Greg Krenzer, head of active trading for VanEck, actively manages EFUT.
See more: Bitwise Lists 2 Ethereum-Themed ETFs
According to VanEck, EFUT invests in standardized, cash-settled ETH futures contracts traded on commodity exchanges registered with the Commodity Futures Trading Commission. Currently, the only ether futures the fund intends to invest in are those traded on the Chicago Mercantile Exchange.
Ethereum, the Layer 1 Building Block of the Decentralized Ecosystem
VanEck’s director of digital asset product Kyle DaCruz called Ethereum “the layer 1 building block of the decentralized applications ecosystem.” Per DaCruz, Ethereum drives “innovations in digital currencies, global payments, smart contracts and much more.”
“While investors still do not have the means to gain exposure to digital assets here in the U.S. via a spot ETF product, we’re very pleased to be launching EFUT as a means to access the robust futures market that has developed around ETH itself,” he added.
EFUT joins the VanEck Bitcoin Strategy ETF (XBTF ) in providing futures-focused exposure to key digital assets. Like EFUT, XBTF does not directly invest in digital assets.
See more: ProShares Launches 3 Cryptocurrency ETFs, Including 1st to Target Ether
A Big Day for Crypto-Linked ETFs
It’s been a big day for Ethereum-linked ETFs. In addition to VanEck, Bitwise and ProShares have also launched new crypto ETFs today.
“The SEC has been clearing their desks ahead of the possible government shutdown,” said VettaFi’s associate director of research Roxanna Islam. “This means issuing delays for spot bitcoin ETF filings while likely allowing ether future ETFs to potentially begin trading early next week.”
See more: SEC Opens Floodgates to Ethereum Futures ETFs
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