VanEck Embraces Ethereum Futures with New ETF Promising Tax Benefits

<p>VanEck is is stepping into the Ethereum blockchain with the
launch of VanEck Ethereum Strategy ETF (EFUT). This ETF, structured as a
C-Corp, is aimed at transforming how investors could benefit from the future of
Ethereum, the company said. Unlike traditional cryptocurrencies, EFUT focuses
on Ethereum (ETH) futures contracts. It offers an investment opportunity that
provides a tax advantage for long-term investors.</p><p>EFUT is designed to invest in standardized, cash-settled ETH
futures contracts traded on commodity exchanges registered with the Commodity
Futures Trading Commission (CFTC). Currently, the fund intends to focus on ETH
futures traded on the Chicago Mercantile Exchange.</p><p>Access to ETH Futures Market </p><p>Kyle DaCruz, the Director of Digital Asset Product at
VanEck, said: "While investors still do not have the means to gain
exposure to digital assets here in the US via a spot ETF product, we're very
pleased to be launching EFUT as a means to access the robust futures market
that has developed around ETH itself."</p><p>The ETF is actively managed by Greg Krenzer, VanEck's Head
of Active Trading, who has over two decades of experience in trading across
various asset categories, including futures.</p><p>EFUT joins VanEck's Bitcoin Strategy ETF (XBTF) in offering
futures-focused exposure to digital assets. Just like EFUT, XBTF is structured
as a C-Corp and provides exposure to <a href="https://www.financemagnates.com/terms/b/bitcoin/">Bitcoin</a> futures investments. According to
VanEck, both ETFs offer a tax-efficient way for investors to participate in the
digital asset markets without directly holding cryptocurrencies.</p><p>VanEck Affected by SEC's Delays</p><p>Recently, the United States Securities and <a href="https://www.financemagnates.com/terms/e/exchange/">Exchange</a>
Commission (SEC) <a href="https://www.financemagnates.com/cryptocurrency/sec-delays-decision-on-spot-bitcoin-etf-proposal/" target="_blank" rel="follow">extended
its timeline</a> for deciding on the applications for spot Bitcoin
exchange-traded funds (ETFs). This delay, affecting major asset management
companies, including VanEck, results from a funding dispute in Congress and a
looming threat of a government shutdown.</p><p>The affected companies face a third set of deadlines in
mid-January, potentially subject to further extensions. However, the SEC has
emphasized that decisions on these Bitcoin <a href="https://www.financemagnates.com/tag/etfs/" target="_blank" rel="follow">ETFs</a> must be reached by
mid-March. </p><p>VanEck's previous application for a spot Bitcoin ETF was rejected by the SEC, as the regulators remained cautious about ETFs based on
the spot price of Bitcoin. Recently, Congress urged the SEC to <a href="https://www.financemagnates.com/cryptocurrency/lawmakers-urge-sec-to-approve-bitcoin-etfs-following-court-decision/" target="_blank" rel="follow">approve
the pending applications</a> for spot Bitcoin ETFs, saying the asset class was
similar to crypto futures ETFs that the agency had previously approved.</p>

This article was written by Jared Kirui at www.financemagnates.com.