Asset manager VanEck is smart. After filing a Bitcoin Strategy ETF last week, you have now applied for an Ethereum Strategy ETF, which will follow ETH Futures.
Specifically, VanEck presented its case to the United States Securities and Exchange Commission (SEC) on Wednesday, August 18. Precisely, the SEC file indicates:
«The Fund is an actively managed exchange-traded fund (ETF). That seeks to achieve its exchange objective, investing, under normal circumstances, in ETH Futures contracts. Thus, as in joint investments. The Fund does not invest directly in ETH».
VanEck Joins ETF Applications
Investment management firm VanEck applied for an Ethereum-based exchange-traded fund (ETF). That it would seek to circumvent the ETF blockade of the United States regulators by indirectly trading Ethereum.
In fact, according to the filing, the Ethereum Strategy ETF would invest in Ethereum futures contracts, the Ethereum ETFs approved in Canada. Also, private Ethereum funds and publicly traded products with exposure to Ethereum. What it won’t do is buy the cryptocurrency itself.
In contrast, VanEck’s Indirect Ethereum ETF is a “40 Act” fund. That ETF structure likely carries more protections for investors than its Law 33 counterpart. An important distinction for SEC Chairman Gary Gensler.
Other Aspiring Exchange Traded Fund
By the way, VanEck, joins Kryptoin and New York-based Wisdom Tree Investments in filing an ETF offering exposure to ETH in 2021.
In this regard, Delaware-based Kryptoin Investment Advisors has joined a cryptocurrency ETF. By filing an Ethereum exchange-traded fund (ETF) with the United States Securities and Exchange Commission (SEC).
According to a filing on August 12, the “Kryptoin Ethereum ETF Trust” plans to list its common shares on the Chicago Board Options Exchange (Cboe) BZX.
«The investment objective of the Fund is to provide exposure to Ethereum at a price that reflects the actual Ethereum market. Where investors can buy and sell Ethereum, without the expenses of the Fund’s operations».
ETF Bitcoin Strategy
Also, according to US Securities and Exchange Commission (SEC) records, VanEck submitted a prospectus for an exchange-traded fund, or ETF, on August 9.
Unlike their Bitcoin (BTC) or Ethereum (ETH) ETFs which are currently being reviewed by the federal agency. The proposed fund would not invest in BTC directly, but would instead provide exposure through Bitcoin futures contracts, pooled investment vehicles, and other publicly traded products.
By the way, Gary Gensler suggested earlier this month that it could be open for approval of ETFs exposed to regulated futures contracts, under the Investment Companies Act of 1940.
“When combined with the other federal securities laws, the Act of 40 provides important investor protections.”
Currently, Galaxy filed with the SEC a Bitcoin Strategy ETF: «The Fund does not invest or seek direct exposure to the current spot price of Bitcoin. Investors seeking direct exposure to the price of Bitcoin should consider an investment other than the Fund».
Finally, Ethereum (ETH), the world’s second largest cryptocurrency, has seen a strong run in the last two weeks. Also, despite the current selling pressure, it is trading at $ 2,990 levels. Hopefully ETH can maintain these levels and soon resume its journey north.
I close with this phrase from Cicero: «Nothing disturbs human life so much as ignorance of good and evil».