Fund manager VanEck filed for an Ethereum-based exchange-traded fund (ETF) on Wednesday that would seek to sidestep U.S. regulators’ crypto ETF blockade by trading ether indirectly.
The Ethereum Strategy ETF would invest in ether futures contracts, Canada’s approved ether ETFs, private ether funds and exchange-traded products with exposure to ether. What it won’t do is buy the digital asset itself, according to a filing.
VanEck already has a pure-play ether ETF before the SEC. But that product’s fate remains unclear and is likely tied to that of over a dozen bitcoin ETF bids (all so-called “33 Act” products) also before the crypto-cautious securities regulator.
By contrast, VanEck’s indirect ether ETF is a “40 Act” fund. That ETF structure likely carries more investor protections than its 33 Act counterpart – an important distinction for SEC chair Gary Gensler.
Earlier this month, D.C.’s self-appointed crypto cop hinted the SEC could look more favorably upon bitcoin ETFs that only trade futures contracts. He did not comment more broadly on crypto ETFs. Ether and bitcoin are the only two crypto assets approved for futures trading in the U.S.
That VanEck’s proposed fund would trade a broad array of ether products might fall outside Gensler’s guardrails.
The company has also filed for a similar fund that would invest indirectly in bitcoin, alongside its more direct bitcoin ETF application.
Source: Coindesk
