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Ether Futures ETFs Launch. VanEck Commits 10% to Developers

Crypto | Oct 3, 2023

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Three U.S. investment managers, ProShares, VanEck, and Bitwise Asset Management, have launched the first futures-based exchange-traded funds (ETFs) tied to the value of ether, the world's second-largest cryptocurrency.

A total of six new funds allow investors to engage in exchange-traded products based on ether for the first time.

  • BitWise Ethereum Strategy ETF (AETH), 0.85%
  • Bitwise Bitcoin and Ether Equal Weight Strategy ETF (BTOP), 0.85%
  • ProShares Ether Strategy ETF (EETH), 0.95%
  • ProShares Bitcoin & Ether Equal Weight Strategy ETF (BETE), 0.95%
  • Bitcoin & Ether Market Cap Weight Strategy ETF (BETH), 0.95%
  • VanEck Ethereum Strategy ETF (EFUT), 0.66%

On their first day of trading, the funds experienced trading volumes totaling $1.92 million.  These funds vary by strategy, structure, and cost, and more ETFs tied to ether futures are expected in the future.

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The ProShares Ether Strategy ETF was the largest single fund, with trading valued at $878,560.

The launch of these ETFs does not indicate a change in the SEC's position on spot bitcoin ETFs, which continue to face significant regulatory challenges

The SEC has historically denied all spot Bitcoin ETF applications, citing concerns over investor protection from market manipulation.

VanEck commits to donate 10% of all Ether futures ETF profits to Ethereum’s core developers for a decade.

VanEck’s decision to financially back Ethereum’s core developers, specifically the Protocol Guild, is a testament to the firm’s belief in the symbiotic relationship between traditional finance (TradFi) and decentralized finance (DeFi).

This initiative not only underscores the importance of supporting the developers who are the backbone of the cryptocurrency’s infrastructure but also sets a precedent for other asset managers to follow.  The Protocol Guild, comprising over 150 developers, has been instrumental in maintaining and advancing Ethereum’s core technology, thereby facilitating the growth and stability of the Ethereum blockchain.

See:  The Race for Ethereum Futures ETF Applications

Other crypto-native communities and platforms, including Lido Finance, Uniswap, Arbitrum, Optimism, ENS Domains, MolochDAO, and Nouns DAO, have also extended their support to the Ethereum network in various capacities. Over the past few years, core developers have received contributions totaling over $12 million, which are then judiciously distributed among its members based on their contribution periods.

A Long Time Coming

The launch of Ether futures ETFs by VanEck, ProShares, and Bitwise Asset Management heralds a new era in the integration of cryptocurrency within traditional investment avenues, providing investors with novel opportunities to delve into the digital asset space.

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