VanEck’s Ethereum Strategy Fund (EFUT) is slated for listing on the Chicago Board Options Exchange (CBOE), as revealed in a recent update on their official website.
Preparing for a grand launch, the investment management giant is set to introduce its Ethereum-based futures contracts on October 2, after successfully obtaining a green light from the US Securities and Exchange Commission (SEC).
The firm elaborated that this Ether futures exchange-traded fund (ETF) will be fully standardized and settled in cash. Furthermore, it will be available for trading on a platform regulated by the Commodity Futures Trading Commission (CFTC).
In essence, an ETF mirrors the performance of a specific index or a collection of financial assets. This is precisely the purpose that VanEck aims to serve with its latest offering.
Announced as the Ethereum Strategy Fund (EFUT) on their website, VanEck’s new offering enables investors to tap into futures contracts without the necessity to directly handle the digital asset.
VanEck went on to specify that this ETF will not be passively managed. Instead, it will operate within a C-corp structure. Such a structure typically offers long-term investors a more flexible and tax-advantageous environment compared to the S-corp setup.
Shedding light on the cost implications for investors, VanEck revealed an expense ratio of 0.66%.
In the midst of this, the investment giant, boasting over $77 billion in assets under management (AUM), has been actively promoting the ETF across all its digital platforms, with a special emphasis on X (previously known as Twitter).
To rally investors around this new venture, they’ve rolled out a promotional video with the catchy tagline: “Enter the Ether.”
All Good Things Come to Ethereum Core Developers
VanEck has announced plans to support the foundational development of Ethereum by pledging a substantial donation.
As per a recent post on X (formerly Twitter), VanEck plans to allocate 10% of its profits from the Ethereum Strategy ETF to the Protocol Guild over the next decade. The Protocol Guild, an assembly of key Ethereum contributors, is responsible for overseeing the core progression of the Ethereum network.
To date, the Protocol Guild has amassed an impressive $13.3 million in charitable contributions. A dashboard on Dune, dedicated to monitoring these generous acts, reveals that over 4,800 donations have been received, averaging around $2,842 per donation.
The Guild’s mission has drawn support from other major projects in the crypto realm as well, with notable names like Arbitrum, Uniswap, and Moloch DAO joining the ranks of contributors.
In the burgeoning space of Ether futures contracts trading, VanEck isn’t the only investment manager joining the fray.
Bitwise Asset Management, another U.S.-based player, recently revealed its plan to roll out two Ether futures contracts, along with a Bitcoin strategy fund, commencing on October 2.
Moreover, other financial giants such as Invesco Galaxy Ethereum ETF have communicated to the SEC about their ambitions to launch an Ethereum-focused Strategy ETF. The burgeoning interest from these entities indicates a growing institutional acceptance and potential for Ethereum-based financial products.