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VanEck Proposes 0.2% Fee for Ether ETF Following Partial Regulatory Victory
Investment management firm VanEck has set a fee of 0.2% for its proposed ether spot exchange-traded fund (ETF), Reuters reported. This announcement, detailed in a U.S. Securities and Exchange Commission (SEC) filing, comes at a time of significant regulatory progress for cryptocurrency ETFs.
Last month, the SEC approved requests from major stock exchanges such as Nasdaq, CBOE and NYSE to list ETFs tied to the price of ether, the second-largest cryptocurrency by market capitalization. This important approval could allow these products to begin trading by the end of the year, offering new opportunities for investors.
VanEck is one of nine issuers, including big names like ARK Investments/21Shares and BlackRock, looking to launch these Ether ETFs. Competition in this space highlights a growing interest in providing investors with easier access to cryptocurrency investments without the direct ownership and associated risks of holding cryptocurrencies like Ethereum.
A spot Ether ETF like the one offered by VanEck allows investors to gain exposure to Ether price movements without managing and storing the digital assets themselves. This simplification is expected to appeal to a broader range of investors seeking to avoid the technical and security challenges of directly owning cryptocurrencies.
Last year, VanEck entered the Ethereum blockchain space after launching the VanEck Ethereum Strategy ETF (EFUT). The company said this fund, structured as a C-Corp, aims to improve how investors could benefit from future Ethereum (ETH. EFUT focuses on ETH futures contracts and offers investors an investment opportunity that reportedly provides a long-term tax advantage.
VanEck Ethereum Strategy ETF
Specifically, EFUT invests in standardized, cash-settled ETH futures contracts traded on CFTC-registered commodity exchanges. Initially, the fund will focus on ETH futures traded on the Chicago Mercantile Exchange.
Last month, the cryptocurrency industry reached a significant milestone when the The SEC has approved the listing of ether ETFs on American stock exchanges. However, the agency has yet to approve the trading of these assets, Financial magnates reported.
The regulator must approve S-1 forms submitted by potential fund issuers for these assets to be traded. S-1 registration forms contain detailed information about new securities to be offered to the public. For ETFs, these modules include the fund’s structure, management and investment strategy, along with details on how the performance of the underlying assets is monitored.
Investment management firm VanEck has set a fee of 0.2% for its proposed ether spot exchange-traded fund (ETF), Reuters reported. This announcement, detailed in a U.S. Securities and Exchange Commission (SEC) filing, comes at a time of significant regulatory progress for cryptocurrency ETFs.
Last month, the SEC approved requests from major stock exchanges such as Nasdaq, CBOE and NYSE to list ETFs tied to the price of ether, the second-largest cryptocurrency by market capitalization. This important approval could allow these products to begin trading by the end of the year, offering new opportunities for investors.
VanEck is one of nine issuers, including big names like ARK Investments/21Shares and BlackRock, looking to launch these Ether ETFs. Competition in this space highlights a growing interest in providing investors with easier access to cryptocurrency investments without the direct ownership and associated risks of holding cryptocurrencies like Ethereum.
A spot Ether ETF like the one offered by VanEck allows investors to gain exposure to Ether price movements without managing and storing the digital assets themselves. This simplification is expected to appeal to a broader range of investors seeking to avoid the technical and security challenges of directly owning cryptocurrencies.
Last year, VanEck entered the Ethereum blockchain space after launching the VanEck Ethereum Strategy ETF (EFUT). The company said this fund, structured as a C-Corp, aims to improve how investors could benefit from future Ethereum (ETH. EFUT focuses on ETH futures contracts and offers investors an investment opportunity that reportedly provides a long-term tax advantage.
VanEck Ethereum Strategy ETF
Specifically, EFUT invests in standardized, cash-settled ETH futures contracts traded on CFTC-registered commodity exchanges. Initially, the fund will focus on ETH futures traded on the Chicago Mercantile Exchange.
Last month, the cryptocurrency industry reached a significant milestone when the The SEC has approved the listing of ether ETFs on American stock exchanges. However, the agency has yet to approve the trading of these assets, Financial magnates reported.
The regulator must approve S-1 forms submitted by potential fund issuers for these assets to be traded. S-1 registration forms contain detailed information about new securities to be offered to the public. For ETFs, these modules include the fund’s structure, management and investment strategy, along with details on how the performance of the underlying assets is monitored.