World Crypto Global
- Written by: Jared Kirui
- Mon, 24 Jun 2024
- Israel
Investment management firm VanEck has set a fee of0.2% for its proposed spot ether exchange-traded fund (ETF), Reuters reported. Thisannouncement, detailed in a US Securities and Exchange Commission (SEC) filing,comes at a time of significant regulatory advancements for cryptocurrency ETFs.Paving the Way for Ether ETFsLast month, the SEC approved applications from majorexchanges such as Nasdaq, CBOE, and NYSE to list ETFs tied to the price ofether, the second-largest cryptocurrency by market capitalization. Thisimportant approval could allow these products to begin trading by the end ofthe year, offering new opportunities for investors.VanEck is one of nine issuers, including notable nameslike ARK Investments/21Shares and BlackRock, seeking to launch these EtherETFs. The competition in this sector highlights a growing interest in providinginvestors with easier access to cryptocurrency investments without the directownership and associated risks of holding cryptocurrencies like Ethereum.A spot ether ETF like the one proposed by VanEckallows investors to gain exposure to ether's price movements without managing and storing the digital assets themselves. This simplificationis expected to attract a broader range of investors seeking to avoid thetechnical and security challenges of direct ownership of crypto.Last year, VanEck entered the Ethereum blockchainspace after launching VanEck Ethereum Strategy ETF (EFUT). The companymentioned that this fund, structured as a C-Corp, seeks to enhance howinvestors could benefit from the future of Ethereum (ETH. EFUT focuses on ETHfutures contracts and offers investors an investment opportunity thatreportedly provides a tax advantage in the long term.VanEck Ethereum Strategy ETF Specifically, EFUT invests in standardized,cash-settled ETH futures contracts traded on commodity exchanges registeredwith the CFTC. Initially, the fund will focus on ETH futures traded on theChicago Mercantile Exchange.Last month, the crypto industry achieved a significantmilestone when the SEC approved the listing of ether ETFs on American exchanges.However, the agency has yet to approve trading of these assets, Finance Magnates reported.The regulator must approve the S-1 forms filed by potential fund issuers for these assets to be allowed to trade. TheS-1 registration forms contain detailed information about new securities to beoffered to the public. For ETFs, these forms include the funds structure,management, and investment strategy, along with details on the methods oftracking the performance of the underlying assets.This article was written by Jared Kirui at www.financemagnates.com.
