Six major asset managers, including Grayscale and VanEck, have filed new applications to launch exchange-traded funds (ETFs) in Ether futures (ETH) to customers in the USA.
Separate filings with the US Securities and Exchange Commission reviewed by Cointelegraph outline the respective practices of Grayscale, VanEck, Bitwise, Volatility Shares, ProShares, and Round Hill Capital.
We have 5 different #Ethereum futures ETFs officially filed with the SEC. We would like to know what has changed since May, except that someone (Volatility Shares) applied on Friday. ProShares has bet directly on the reverse/short ETF.
Officially there are 5 different #Ethereum Futures ETF files filed with the SEC. I would like to know what has changed since May, except that someone (Volatility Shares) applied on Friday. ProShares went straight to the reverse/short ETF. pic.twitter.com/qVVUwrUjOI
— James Seyffart (@JSeyff) August 1, 2023
This Grayscale deposit contains two questions: a Grayscale Global Bitcoin Composite ETF and Grayscale Ethereum Futures ETF. Grayscale’s Ether ETF will invest in futures contracts that will be traded on the Chicago Mercantile Exchange.
The SEC document states that the Grayscale fund will mainly invest in “front month” Ether futures, i.e. contracts with the “shortest expiry”. Grayscale added that it plans to launch Ether futures contracts before they expire.
Moreover Shares of Volatility announced its plans to list an Ether futures ETF by investing its assets in cash-settled contracts referencing ETH trading on the Chicago Mercantile Exchange. Fund will not invest directly in Ether.
Volatility’s filing also indicates that it plans to enter cash-settled Ether futures contracts as a buyer. Cash-settled futures markets usually require a counterparty to pay the buyer cash if the price of a futures contract falls, while the buyer pays the counterparty if the price of a futures contract falls.
This VanEck deposit as well as investment strategy. The fund will seek to invest in ETH futures contracts with the ETH exposure to equal 100% of the fund’s total assets..
The article states that any change in ETH’s value will translate into larger changes for VanEck’s Ether ETF fund. This will lead to the potential for “greater losses than if the fund’s exposure to ETH was unleveraged.”
ProShares Provided an overview of the Short Ether Strategy ETF. S&P will invest in day contracts looking to profit from losses in the CME Ether Futures Index. As explained, the ProShares fund earns as much as the index loses on a given day and vice versa.
These requests come just after recent requests from various mainstream asset management firms that they plan to launch Bitcoin ETFs. BlackRock, the world’s largest asset manager, is also among those standing. try to propose what would be the first Bitcoin ETFs (bitcoin) are offered in the country.