Six Major Asset Managers File Applications for Ether Futures ETFs in the US

Leading Asset Managers Submit Ether ETF Applications

Six prominent asset managers have submitted new applications with plans to roll out Ether (ETH) futures exchange-traded funds (ETFs) to US-based consumers. These applications have been submitted separately to the US Securities and Exchange Commission (SEC) with explicit outlines from giants such as Grayscale, VanEck, Bitwise, Volatility Shares, ProShares, and Round Hill Capital.

Grayscale Set To Launch Bitcoin and Ether Futures ETF

In the Grayscale submission, there are two proposals under consideration: a potential Global Bitcoin Composite ETF and an Ethereum Futures ETF. Grayscale's Ethereum ETF will invest in futures contracts planned for trading on the Chicago Mercantile Exchange. The SEC documents reveal that Grayscale's fund will predominantly invest in "front-month" Ether futures, essentially contracts with the shortest maturity period.

Volatility Shares Plans for An Ether ETF

Volatility Shares also unveiled its plans for listing an Ethereum futures ETF, setting its investment sights on cash-settled contracts referencing the ETH's trading on the Chicago Mercantile Exchange.

The fund plans not to directly invest in ETH. It also plans to engage in cash-settled ETH futures contracts as the buyer.

The VanEck Strategy for ETH Futures

As per the VanEck filing documents, the investment strategy will focus on the ETH futures contracts. The purpose of this is to match the value of the fund's ETH exposure to 100% of the total fund assets. Any volatility in the value of ETH might lead to substantial changes in VanEck's Ethereum ETF fund, including potentially significant losses.

ProShares’ Short Ether ETF Strategy

ProShares also outlined its Short Ether Strategy ETF, investing in daily contracts that are designed to profit from S&P CME Ether Futures index losses. The ProShares fund stands to gain as much as the index loses on any given day, with the reverse also applying.

These applications followed closely on the heels of recent applications submitted by numerous leading asset management firms intending to launch Bitcoin ETFs. The move signifies a massive step for the industry as even asset management heavyweight BlackRock explores the possibility of offering the nation’s first-ever Bitcoin ETFs.