The world of exchange-traded funds [ETFs] based on Ethereum futures received a significant boost with the launch of VanEck’s EFUT fund. VanEck, a global investment manager, activated its EFUT fund for trading, offering investors exposure to Ether-linked investments through an exchange-traded instrument. It’s essential to note that EFUT does not directly invest in ETH or other digital assets; instead, it seeks capital appreciation by investing in Ethereum futures contracts.
EFUT is set to be listed on the Chicago Board Options Exchange [CBOE] and will be managed by Greg Krenzer, VanEck’s Head of Active Trading. Krenzer, with over two decades of experience in trading various asset categories, including futures, brings valuable expertise to the management of EFUT.
Joining VanEck in this venture, other prominent players in the financial market, including ProShares, Bitwise, and others, are launching their respective Ethereum Futures ETFs on October 2. These launches were made possible through filings with the U.S. Securities and Exchange Commission and official announcements.
VanEck’s commitment to the ETH community is evident through its pledge to donate 10% of EFUT’s profits to the Protocol Guild. This guild serves as a compensation plan for core contributors to the Ethereum network, providing crucial support to approximately 150 individuals responsible for maintaining the core Ethereum protocol, as reported by TronWeekly.
Grayscale, a major player in the cryptocurrency investment space, has also made significant moves. Following the introduction of Ethereum Futures ETFs in the U.S. market, Grayscale aims to convert its Grayscale ETH Trust [ETHE] into a spot ETH ETF. This transition is reflected in the filing of a 19b-4 with the SEC. Notably, regulatory permissions for new crypto ETFs are obtained from the exchange listing the fund’s shares rather than from the sponsor itself.
Ethereum Futures- A Closer Look at the Market Dynamics
As of October 2, a total of nine new ETF products have entered the market, all designed to track futures contracts linked to the value of Ethereum’s native currency. Despite witnessing trading volumes of less than $2 million on the first day, these ETFs have garnered attention.
While this trading volume pales in comparison to that of the ProShares Bitcoin Strategy ETF [BITO], which surpassed $1 billion in trading volume on its debut, experts like Bloomberg ETF analyst Eric Balchunas view this activity as substantial. He noted that although investors typically favor spot ETF products over futures, the volume observed was comparatively significant for this type of financial product launch.