Investment management heavyweight, VanEck, is set to unveil a new financial player on the block, the ‘VanEck Ethereum Strategy ETF’ (EFUT). The fund targets direct investment in standard ETH futures contracts, which are typically traded on the CFTC-approved commodity exchanges. Among these exchanges, the fund will be deeply linked with futures traded on the Chicago Mercantile Exchange (CME).
Post-launch, the EFUT will feature prominently in the line-up of offerings on the Chicago Board Options Exchange (CBOE), following in the footsteps of its sister product, the VanEck Bitcoin Strategy ETF (XBTF). Both will capitalise on the tax efficiencies linked to their C-Corp structures, a legal framework where the corporation’s taxation and that of its owners remain separate entities. This is seen as a promising scenario for long-term investors.
The race to establish spot ETH ETFs, however, teeters on uncertain ground, with worries around market manipulation and investor vulnerability hindering approval by the Securities Commission Exchange (SEC). Under the heat of these circumstances, the futures-focused EFUT might find a ready path to SEC endorsement, due to its safer profile of taking up futures traded on the CME rather than the more volatile underlying smart asset.
Despite the gray cloud hovering over spot ETH ETFs, whispers of possible approval of Ether futures ETFs in the early days of October are stoking interest among asset managers. Fueling these rumours, Bloomberg’s Intelligence analyst, James Seyffart hinted at an increased chance of the SEC giving a nod to ETH futures ETF applications.
Traces of widespread acknowledgment of ether futures ETF submissions by the SEC are adding fuel to this speculation. This surge of activity could well be a reaction to the impending shutdown on October 1 if Congress does not hammer out an agreement or devise a funding game plan for the new fiscal year. The impact of this potential shutdown would not just hit SEC, but other financial regulators and federal agencies too.
In this boiling pot of uncertainties and conjectures, what the coming days hold for the ETH futures ETFs remain to be seen. Yet, the preliminary whispers of an increased likelihood of approval are enough to keep the anticipation high among investors and window watchers from the crypto realm.
Source: Cryptonews
