VanEck Ethereum Futures ETF Could Launch Soon | ETF Trends

VanEck indicated in a press release Thursday that the debut of its proposed ethereum futures ETF is imminent, though the issuer did not provide a possible launch date. However, it’s not clear if the VanEck Ethereum Strategy ETF (EFUT) will be the first such fund to market.

Published comments from Bloomberg analysts Eric Balchunas and James Seyffert have indicated that the SEC is potentially looking to expedite the approval of ethereum futures ETFs before the possible government shutdown. The regulatory agency has apparently asked would-be issuers of ethereum futures ETFs to make updated filings by the end of the week. Such funds could become effective by October 2, according to Bloomberg.

As recently as Thursday morning, Reuters reported that the likelihood of a shutdown was increasing, as both parties pushed opposing bills in the different congressional chambers. Funding for federal agencies is expected to dry up as soon as Sunday.

“With the SEC potentially approving ethereum futures ETFs before the possible government shutdown, it seems like the SEC is drifting toward leniency of crypto ETF filings including spot bitcoin ETFs,” said VettaFi Associate Director of Research Roxanna Islam Swan.

Earlier this week, Forbes and other sources reported that the SEC had pushed back its decision on the ARK 21Shares Bitcoin ETF, which would hold actual bitcoin rather than futures, from mid-November to mid-January. Forbes labeled the action “perplexing” in light of a letter to SEC Chair Gary Gensler signed by four members of congress from both parties. The document called for the immediate approval of a spot bitcoin ETF.

More About EFUT

The VanEck press release noted that the fund, which is structured as a C-Corp, will be actively managed. EFUT will not invest directly in ether, instead getting its exposure mainly via futures contracts on the cryptocurrency. The issuer’s head of active trading, Greg Krenzer, will manage the  fund.

VanEck said it will provide updates on the fund via X (@vaneck_us), the platform formerly known as Twitter. Currently, the most recent filing does not include an expense ratio.

The issuer is up against a number of firms that have also already filed for ETFs investing in ethereum futures back in August. Those names include the likes of Volatility Shares, ProShares, Grayscale, Roundhill, Bitwise, and Direxion, among others.

VanEck already offers the $43.3 million VanEck Bitcoin Strategy ETF (XBTF), which launched in mid-November 2021. That fund is similar to EFUT in that it provides exposure to the price of the bitcoin cryptocurrency via futures contracts.

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