VanEck and ProShares Apply for Ethereum Futures ETFs

Filings mirror bitcoin strategy ETFs filed by these firms and others over past few weeks.

article-image

Source: Shutterstock

share

key takeaways

  • ProShares and VanEck filed for bitcoin futures-based ETFs earlier this month, and the latter firm applied for an ETF that would hold ETH in May
  • Recent comments from SEC Chairman Gary Gensler hint that bitcoin futures ETFs could be approved before funds investing in Ether futures

The wave of crypto futures ETF filings have continued, with VanEck and ProShares being the latest to reveal plans, this time for products focused on Ethereum.

VanEck is looking to launch the Ethereum Strategy ETF, while ProShares is calling its proposed product the Ether Strategy ETF, according to SEC disclosures filed Wednesday.

Both funds would invest in Ether futures contracts, as well as pooled investment vehicles and exchange-traded products that provide exposure to ETH, the document notes. The ETFs would not invest in Ether directly. 

ProShares and VanEck declined to comment beyond the filing.   

The filings come after VanEck, ProShares and others filed for ETFs that would invest in bitcoin futures contracts. Gabor Gurbacs, director of VanEck’s digital assets strategy, previously told Blockworks via email that the futures markets have significantly matured in the last few years.

Many of the prospective bitcoin futures-based ETF issuers will likely look to offer an ether futures ETF, according to Nate Geraci, president of The ETF Store. 

“If an issuer has made the decision to pursue a crypto presence, why limit to a single crypto asset at this early stage?” he told Blockworks. “There will likely be high demand for ether ETFs, so it makes good business sense if an issuer thinks they have the ability to compete in the space.”

Geraci added, however, that not every ETF issuer offering a gold ETF is offering a silver ETF, noting that the same will likely hold true with bitcoin and ether funds.

SEC Chairman Gary Gensler implied earlier this month that the agency may look more favorably upon ETFs limited to bitcoin futures traded on the Chicago Mercantile Exchange. 

“Given the most recent messaging from the SEC … it seems highly likely a bitcoin futures ETF will be approved before an ether futures product,” Geraci said. “It’s not unreasonable to think a bitcoin futures ETF could be approved before the end of the year.”

VanEck was the first fund manager this year to apply for an Ethereum Trust in May, which would physically hold the crypto asset. WisdomTree Investments followed that up with a filing of its own later that month, and most recently, Kryptoin last week filed a similar product.

ProShares parent company ProFunds launched the Bitcoin Strategy ProFund last month. The offering, which was the first publicly available US bitcoin strategy mutual fund, primarily invests in bitcoin futures contracts. The fund group also proposed to the SEC in June the ProShares S&P Kensho Global Crypto & Blockchain ETF.

Want more investor-focused content on digital assets? Join us September 13th and 14th for the Digital Asset Summit (DAS) in NYC. Use code ARTICLE for $75 off your ticket. Buy it now.

Tags

Upcoming Events

HYATT REGENCY SALT LAKE CITY

TUES, OCT. 8, 2024

Guided by the expertise of Blockworks Research Analysts team, this one day event will feature senior leaders, entrepreneurs, and developers from across the crypto industry. Attendees will have the opportunity to participate in an immersive experience to explore the latest trends, […]

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

hivemapper.jpeg

Research

We believe crypto market participants overlook Hivemapper’s fundamental potential due to a poor understanding of both the niche map data market and Hivemapper’s positioning relative to incumbents. Hivemapper’s token model catalyzes both a cost and product advantage via unmatched map freshness and near real-time accuracy, which is its wedge into a market characterized by stale data and high data collection costs. Its current and potential future product suite may represent one of the strongest possibilities for PMF in crypto today.

article-image

The Department of Justice and Commodity Futures Trading Commission announced back-to-back lawsuits against KuCoin Tuesday

article-image

Judge Failla found that Coinbase didn’t operate as an unregistered broker in offering its wallet service

article-image

A fund by Laser Digital offers investors exposure to the Polygon network, while a new 21Shares ETP focuses on staking rewards from Toncoin

article-image

Sponsored

The TRON network’s integration into Dune brings a wealth of data and insights to the fingertips of users

article-image

A BTC futures fund offered by Hashdex and Tidal Investments has gotten regulatory clearance to hold bitcoin directly

article-image

At launch, Chain Signatures will be compatible with Bitcoin, Ethereum and Cosmos network chains, as well as DogeCoin and XRP Ledger