Currently, the race to establish dominance in the ETF (Exchange Traded Fund) space is heating up. One of the most notable names in the asset management sector, VanEck, is making headlines once again. With a massive $80 billion under its management, VanEck is preparing to launch an Ethereum Futures ETF. This move comes as a surprise to many, especially given the recent delay by the U.S. Securities and Exchange Commission (SEC) in its decision-making process regarding spot Ethereum ETFs.
VanEck Dodges SEC’s Delay
In a significant move, VanEck, the asset management giant with $77.8 billion under its belt, has announced its plans to introduce an Ethereum futures exchange-traded fund (ETF). Named the VanEck Ethereum Strategy ETF (EFUT), this fund is set to accelerate VanEck’s dominance in the crypto market.
According to the firm’s recent statement, the EFUT will primarily invest in standardized, cash-settled ETH futures contracts. These contracts will be traded on commodity exchanges that are duly registered with the Commodity Futures Trading Commission (CFTC)
The Ethereum Strategy ETF will find its listing on the CBOE. This move follows in the footsteps of the firm’s previous successful venture, the VanEck Bitcoin Strategy ETF (XBTF). With the addition of EFUT to its portfolio, VanEck continues to solidify its position in the ETF race.
However, it is to be noted that while XBTF and EFUT are associated with Bitcoin and Ethereum respectively, they do not directly invest in BTC, ETH, or any other digital assets.
The announcement follows the rising trend among traditional finance entities submitting proposals to the SEC for ETFs based on ether futures. Among those vying for a piece of the ETH futures ETF pie are notable names like Bitwise Ethereum Strategy ETF, Roundhill Ether Strategy ETF, ProShares Short Ether Strategy ETF, ProShares Ether Strategy ETF, and Grayscale Ethereum Futures ETF.
This Christmas Might Be Bullish For VanEck
The U.S. Securities and Exchange Commission (SEC) has granted a 45-day extension to the original decision-making deadline for the spot exchange-traded fund applications submitted by Ark Invest and VanEck. In two distinct letters released on Wednesday, the SEC pushed back the initial November 11 deadline. Consequently, the revised date for a decision is set for December 26, 2023.
However, in a post on X, Bloomberg Intelligence analyst James Seyffart remarked that it seems the SEC might greenlight several Ethereum futures ETFs as early as the following week.
Seyffart’s statement came as a reaction to fellow ETF analyst Eric Balchunas, who mentioned he had received information suggesting the U.S. Securities and Exchange Commission was keen on fast-tracking the release of Ether futures ETFs.
Moreover, U.S. Representatives Mike Flood (R-NE), Tom Emmer (R-MN), Wiley Nickel (D-NC), and Ritchie Torres (D-NY) penned a letter to the Chairman of the U.S. Securities and Exchange Commission (SEC), Gary Gensler. In their correspondence, they pressed the regulatory body to immediately grant the approval process for spot bitcoin exchange-traded funds (ETFs) ahead of government shutdown.