Asset managers continue to search for ways to enter the crypto industry.
The cryptocurrency market is witnessing a new chapter as six prominent asset management firms have applied to the US Securities and Exchange Commission (SEC) to introduce Ether (ETH) futures exchange-traded funds (ETFs).
This move marks a significant stride towards the mainstream acceptance of Ether, the second-largest cryptocurrency in terms of market capitalization.
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In separate filings submitted to the SEC, major asset managers Grayscale, VanEck, Bitwise, Volatility Shares, ProShares, and Round Hill Capital have outlined their plans to bring ETH futures ETFs to US customers.
Notably, these applications follow hot on the heels of recent bids to launch spot Bitcoin ETFs by various mainstream asset management firms, including the world's largest asset manager, BlackRock.
Grayscale's application stands out with two distinct filings for a Global Bitcoin Composite ETF and an Ethereum Futures ETF. The latter is set to invest in futures contracts traded on the Chicago Mercantile Exchange (CME), focusing on “front-month” Ether futures.
Volatility Shares is also planning to introduce an Ether futures ETF. Unlike Grayscale's fund, this one will invest in cash-settled contracts referencing ETH trading on the CME. The fund will not invest directly in Ether.
On the other hand, VanEck has revealed an investment strategy that aims to invest in ETH futures contracts making the exposure to ETH value equal to 100% of the fund's total assets. Any fluctuations in the value of Ether would thus lead to corresponding changes in VanEck’s Ether ETF fund.
ProShares plans to offer Short Ether Strategy ETF. This ETF will invest in daily contracts seeking to profit from losses in the S&P CME Ether Futures index. Consequently, the ProShares fund would gain as much as the index loses daily, with the opposite effect also applicable.
The introduction of Ether futures ETFs, if approved, would undoubtedly broaden the horizons for investors seeking exposure to the world of Ethereum and its native digital asset. It may also pave the way for further innovation and integration of cryptocurrencies into mainstream investment products.
