VanEck’s Ethereum Strategy Fund (EFUT) is set to be listed on the Chicago Board Options Exchange (CBOE), as announced on the company’s website. The investment management firm has obtained approval from the US Securities and Exchange Commission (SEC) and plans to launch its Ethereum-styled futures contracts on October 2.
Ethereum Strategy Fund: A Standardized ETF
The Ether futures exchange-traded fund (ETF) offered by VanEck is expected to be a standardized, cash-settled futures contract, accessible for trades on the Commodity Futures Trading Commission (CFTC) regulated commodities platform. This ETF aims to track the performance of a specific index or basket of financial instruments, providing investors with exposure to futures contracts without directly investing in the digital asset itself.
Active Management and Charitable Contributions
VanEck clarified that the Ethereum Strategy Fund will be actively managed under a C-corp structure, offering long-term investors a dynamic and beneficial tax framework. The investment firm also plans to make a significant donation to the core development team behind Ethereum.
“According to a separate statement on X, the investment firm intends to donate 10% of its profits from the Ethereum Strategy ETF to the Protocol Guild – a team of Ethereum contributors managing the network’s core development. VanEck’s donation would span a period of ten years.”
The Protocol Guild, which manages Ethereum’s core development, has already received over $13.3 million in donations. Other projects such as Arbitrum, Uniswap, and Moloch DAO have also contributed to the Protocol Guild.
Industry-wide Adoption of Ether Futures Contracts
VanEck is not the only investment manager entering the Ether futures contracts market. Bitwise Asset Management, another US-based firm, plans to offer two Ether futures contracts and a Bitcoin strategy fund starting October 2. Additionally, asset managers like Invesco Galaxy Ethereum ETF have informed the SEC of their intentions to launch Ethereum-backed Strategy ETFs.
With a strong presence on social media platforms and the launch of a compelling video campaign, VanEck is actively promoting its Ethereum Strategy Fund and encouraging investors to “Enter the Ether.”
As we approach the launch date of the Ethereum futures contracts, it remains to be seen how this new investment opportunity will impact the cryptocurrency market and provide investors with an innovative way to engage with Ethereum.
