Leading investment management firm VanEck, has launched Ethereum Strategy ETF, an exchange-traded fund (ETF) based on Ethereum. To better reflect its exclusive emphasis on ETH futures on the Chicago Board Options Exchange (CBOE), the product has changed its ticker symbol to EFUT. The fund’s expense ratio is 0.66%, and because it will be organised as a C-Corporation, both the fund and its investors will be subject to corporate income tax on payouts.
An alternative to spot ETFs in a stringent US regulatory environment
Despite the lack of a spot ETF product for digital assets in the United States, VanEck’s introduction of the EFUT gives investors exposure to the thriving futures market linked to the world’s second-largest digital currency. Greg Krenzer, VanEck’s Head of Active Trading, is the manager in charge of EFUT. Mr. Krenzer has been with the company since 1994 and is an expert trader in a wide variety of asset classes, including futures.
VanEck provides both active and passive investing strategies that include attractive exposures and are backed by well-thought-out investment procedures. It was in control of about $80.8B in mutual funds, ETFs, and institutional accounts as of August 31, 2023. The firm’s expertise extends from core investment opportunities to specialised exposures that add depth to diversified portfolios.
When looking for patterns that could lead to substantial investment opportunities, VanEck has a history of going beyond the traditional financial markets. The ETF stands out due to its novel C-Corp structure, which is tax-efficient and designed to benefit long-term investors. Prior to floating EFUT, VanEck had launched VanEck Bitcoin Strategy ETF (XBTF), and the new product means it now has two futures-focused products based on digital assets. Importantly, XBTF is also a C-Corp like EFUT, but it does not invest in Bitcoin or other cryptocurrencies directly.