VanEck lines up Ethereum Futures ETF (EFUT)

VanEck, the $80billion asset under management (AUM) firm, is getting ready to unveil its Ethereum futures exchange-traded fund (ETF) as competition for ether (ETH) futures funds builds up.

The VanEck Ethereum Strategy ETF (EFUT) fund will invest in standardised, cash-settled ETH futures contracts traded on commodity exchanges registered with the Commodity Futures Trading Commission (CFTC), the company said today. At present, the only ETH futures the fund intends to invest in are those traded on the Chicago Mercantile Exchange.

The ETF, managed by head of active trading Greg Krenzer, will be listed on CBOE and will join the asset manager’s other futures ETF product, the VanEck Bitcoin Strategy ETF (XBTF).

It follow other such applications with the US Securities and Exchange Commission (SEC) for Ether futures-based ETFs, along with similar Bitcoin spot ETFs.

Other companies that have filed applications for an ETH futures ETF range from Grayscale Ethereum Futures ETF, Roundhill Ether Strategy ETF, Bitwise Ethereum Strategy ETF, ProShares Short Ether Strategy ETF, and ProShares Ether Strategy ETF.

Bitcoin ETFs

Meanwhile, many industry observers believe that a positive outcome for Bitcoin ETF approvals is more likely later this year or even in 2024. This sentiment was reinforced when Bloomberg Intelligence increased the odds of spot Bitcoin ETF approval by the end of 2023.

As the crypto sector continues to evolve, market participants will keenly await further developments regarding potential Bitcoin ETF approvals.