VanEck’s Ethereum Strategy ETF on Track for CBOE Listing

VanEck’s Ethereum Strategy Fund (EFUT) is set for listing on the Chicago Board Options Exchange (CBOE), according to an announcement on its website.

The investment management firm is gearing up to launch its Ethereum-styled futures contracts on October 2, having received approval from the US Securities and Exchange Commission (SEC).

According to the company, the Ether futures exchange-traded fund (ETF) is expected to be entirely standardized, cash-settled futures contracts accessible for trades on the Commodity Futures Trading Commission (CFTC) regulated commodities platform. 

An ETF tracks the performance of a particular index or basket of financial instruments, which is what VanEck’s offering aims to do.

Dubbed the Ethereum Strategy Fund (EFUT) on its website, this offering will grant investors access to futures contracts without requiring direct exposure to the digital asset itself.

VanEck further clarified that the ETF will be actively managed under a C-corp structure. A C-corp structure provides a more dynamic and beneficial tax framework to long-term investors than the S-corp structure. 

Providing more details on how much investors will be charged in management fees, VanEck put its expense ratio at 0.66%. 

Meanwhile, the investment firm with over $77 billion in assets under management (AUM) has been generating buzz about the ETF on all its social media handles, especially X (formerly Twitter). 

https://www.twitter.com/vaneck_us/status/1707419473337033075?s=20

It has since launched a video encouraging investors to “Enter the Ether.”

All Good Things Come to Ethereum Core Developers

VanEck has also stated its intentions 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.

Big announcement!

We intend to donate 10% of our $EFUT ETF profits (https://t.co/gr652AkUvv) to @ProtocolGuild for at least 10 years.

Thank you, Ethereum contributors, for nearly a decade of relentless building & ongoing stewardship of this common infrastructure.

Details 👇

— VanEck (@vaneck_us) September 29, 2023

The Protocol Guild has garnered well over $13.3 million in donations. According to a Dune-based dashboard dedicated to tracking these philanthropic donations, over 4,800 donations have been made, with the average amount at $2,842. 

Other projects that have contributed to the Protocol Guild include Arbitrum, Uniswap, and Moloch DAO.

Meanwhile, VanEck is one of many investment managers starting its Ether futures contracts trading soon. 

Fellow US-based Bitwise Asset Management announced it would offer two Ether futures contracts and a Bitcoin strategy fund starting October 2.  

Other asset managers like Invesco Galaxy Ethereum ETF have informed the SEC of their intentions to offer an Ethereum-backed Strategy ETF.