Ether Futures ETFs Debut as Crypto Fever Reheats

The first trading session of October 2023 also marks the launch of the very first U.S.-listed ETFs holding ether futures. Ether is the cryptocurrency of the Ethereum platform. Bitwise, ProShares, and Van Eck collectively rolled out a total of six funds that hold such futures. Additional similar funds from other issuers are in the works.

VanEck started the latest Ethereum ETF frenzy with the announcement on Thursday that the launch of its VanEck Ethereum Strategy ETF (EFUT) was imminent. That coincided with a flurry of re-filings for similar ETFs. But those funds are only the start. There are more such futures ETFs in registration, and more such physical ETFs are also in the pipeline.

Concerned about the potential for a government shutdown (now averted), the SEC focused last week on cleaning up its backlog. It approved the launches of the ether futures ETFs. However, it pushed off the approval of the ARK 21 Shares spot bitcoin fund.

The Ethereum Wave Gets Rolling

On Monday, VanEck launched EFUT, which is largely differentiated by the fact that it is a C-Corp fund, a structure that conveys certain tax advantages. Bitwise launched two funds of its own, the Bitwise Ethereum Strategy ETF (AETH) and the Bitwise Bitcoin and Ether Equal Weight Strategy ETF (BTOP). Those funds respectively offer exposure to the performance of ether futures and to a 50/50 portfolio of bitcoin and ether futures. Both have expense ratios of 0.85%.

ProShares jumped into the pool with three funds. The ProShares Ether Strategy ETF (EETH) targets ether futures to capture the performance of the cryptocurrency. The ProShares Bitcoin & Ether Equal Weight Strategy ETF (BETE), like Bitwise’s BTOP, offers exposure to a regularly rebalanced equal-weighted portfolio of bitcoin and ether futures. And the ProShares Bitcoin & Ether Market Cap Weight Strategy ETF (BETH) holds a similar blended portfolio that weights the two cryptocurrencies by their market capitalizations. All three have expense ratios of 0.95%.