VanEck files for Ethereum Futures ETF with the SEC


Global
investment manager VanEck files for an Ethereum futures based exchange-traded
fund (ETF) on August 18th that will seek to by-pass U.S Securities
and Exchange Commission’s (SEC) crypto ETF barrier by trading ether or any
other digital asset indirectly.
According to
Wednesday’s filing, VanEck’s Ethereum Strategy ETF will be invested in ETH
futures contracts, Canada’s approved ether ETFs, private ether funds and “pooled
investment vehicles and exchange-traded products that provide exposure to ETH.”
But it won’t buy the digital asset itself.
So far VanEck
already has filed registration of a pure-play ether ETF. But the products’ (“33
Act” products) fortune remains uncertain and is likely tied to that of over a
dozen bitcoin ETF bids that are also before SEC. Till this day, the SEC is
holding its decision and yet to approve any ETF that intends to invest directly
in cryptocurrencies like Ethereum and Bitcoin.
With VanEck’s
“Ethereum Strategy ETF”, Pro shares “Ether Strategy ETF” and Kryptolin’s
“Ethereum ETF Trust”, brings the total to 23 crypto ETF filings so far in 2021.
President of the ETF Store, Nate Geraci said, “Given most recent messaging from
the SEC… it seems highly likely a Bitcoin futures ETF will be approved before
an Ether futures product.”
Nevertheless,
there is hope that Biden’s newly formed SEC’s Chair Gary Gensler would be more
open to accepting ETFs based on crypto futures rather than through direct
exposure. Earlier this month, while speaking at the Aspen Security Forum,
Gensler said that he “particularly looked forward to” the SEC’s review of “ETFs
limited to these CME-traded Bitcoin futures.”
Though Canada
has already ratified a trio of Ethereum ETFs from Purpose Investments, Evolve
ETFs, and CI Global Asset Management; VanEck’s Ethereum futures ETF would be
the first in the United States.

Joyashree Dey
CBW - External Analyst
INDIA