The VanEck Ethereum Strategy ETF is an exchange-traded fund that the financial management company VanEck announced plans to launch on September 28.
This actively managed ETF focuses on Ethereum (ETH) futures contracts to capitalize on capital growth. Greg Krenzer, head of active trading at VanEck, will oversee the ETF’s CBOE listing.
Nevertheless, it’s important to understand that EFUT will not make direct investments in ETH or other digital assets. Alternatively, money will be invested in regular, cash-settled ETH futures contracts.
Only commodities exchanges that have been authorized by the Commodities Futures Trading Commission (CFTC) shall be used to source these contracts. Only ETH futures sold on the Chicago Mercantile Exchange will be the fund’s only investment.
After introducing its VanEck Bitcoin Strategy ETF (XBTF), VanEck has made this strategic decision. The company has agreed to regularly update its official X account, formerly known as Twitter, with information on the launch.
SEC Postpones Decisions on Several Crypto ETFs
The announcement comes after the Securities and Exchange Commission (SEC) repeatedly postponed the approval of Bitcoin and Ethereum ETFs. The SEC turned down a prior application to establish an ETF by Grayscale Bitcoin Trust (GBTC).
After that, Grayscale resubmitted a second proposal with various regulatory tactics included to increase the likelihood of approval. A court ordered the SEC to reconsider Grayscale’s application in August 2023.
The court stressed the need for a more logical decision-making process, which Grayscale executives found unsatisfactory instruction. The SEC has also delayed deciding on the VanEck Ethereum ETF, a planned spot ether fund.
