Digital Assets: VanEck To Launch Ethereum Futures ETF; Will Donate 10% Profits To Developers

The VanEck Ethereum Strategy ETF (EFUT) is expected to list on the CBOE.

VanEck is set to launch the VanEck Ethereum Strategy ETF (EFUT), an actively managed fund geared towards capital appreciation through investments in Ethereum (ETH) futures contracts. EFUT will not directly invest in ETH or other digital assets but will focus on standardized, cash-settled ETH futures contracts traded on CFTC-registered commodity exchanges, primarily those on the Chicago Mercantile Exchange.

The ETF will be listed on the CBOE and will be under the active management of Greg Krenzer, who boasts over two decades of trading experience across various asset categories, including futures. EFUT is structured as a C-Corp, akin to the VanEck Bitcoin Strategy ETF (XBTF), offering a potentially more tax-efficient experience for long-term investors. XBTF, like EFUT, doesn’t directly invest in Bitcoin or other digital assets.

Meanwhile, VanEck has also promised to allocate 10% of all profits generated by the above-mentioned Ether futures ETF to support Ethereum core developers for a duration of 10 years. This announcement was made by the firm on X (formerly Twitter) on September 29.

The Protocol Guild, comprising more than 150 developers responsible for maintaining Ethereum’s fundamental technology, will be the recipients of this donation. VanEck’s rationale behind this philanthropic initiative is rooted in the belief that asset managers should contribute a portion of their earnings to the community responsible for the development of the cryptocurrency protocol.

VanEck’s commitment to identifying impactful investment opportunities goes beyond traditional financial markets. The firm has a history of pioneering access to international markets, setting the stage for investments in asset classes and trends, such as gold in 1968, emerging markets in 1993, and exchange-traded funds in 2006.

Related Story:  Grayscale Applies For Ethereum Futures ETF

Image by Satheesh Sankaran from Pixabay

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