Investing in Ethereum Futures ETFs
Six major asset managers, including Grayscale and VanEck, have submitted applications to launch Ethereum Futures (ETH) exchange traded funds (ETFs) for U.S. customers. According to Cointelegraph, filings from Grayscale, VanEck, BitWise, Volatility Shares, ProShares, and Round Hill Capital were all reviewed by the U.S. Securities and Exchange Commission (SEC).
Grayscale’s filing includes two applications: a proposed Grayscale Global Bitcoin Composite ETF and a Grayscale Ethereum Futures ETF. The latter will invest in futures contracts that are set to be traded on the Chicago Mercantile Exchange. The SEC filing states that the fund will primarily invest in ‘front-month’ Ether futures, which are contracts with the shortest time to maturity. Grayscale also intends to “roll” Ether Futures contracts before they expire.
Investors looking to stay up-to-date with the latest crypto news and gain exposure to web 3.0 technology can consider investing in Ethereum Futures ETFs. With the help of Grayscale and other asset managers, investors can invest in the best daily crypto and circuits of value crypto with confidence.
Investing in Web 3.0 and Crypto
Volatility Shares recently announced plans to launch an Ethereum Futures ETF, investing its assets in cash-settled contracts referencing ETH trading on the Chicago Mercantile Exchange. It is important to note that the fund will not invest directly in Ether.
Volatility also intends to enter into cash-settled Ether Futures Contracts, meaning that if the price of the futures contract increases, the counterparty will pay cash to the buyer, while if the price of the futures contract decreases, the buyer will pay the counterparty.
VanEck’s filing also states that its investment strategy will look to invest in ETH Futures contracts so that the value of ETH which the fund has exposure is equal to 100% of the total assets of the fund. This means that any changes in the value of ETH will result in larger changes to VanEck’s Ether ETF fund, potentially leading to “greater losses than if the Fund’s exposure to the value of ETH were unleveraged”.
Investors looking to invest in Web 3.0 and crypto should keep up with the best daily crypto news and the best way to keep up with crypto is to read Cointelegraph Crypto and SEC Crypto Today. AI This Week is also a great resource for investors looking to understand the latest trends in the industry. Additionally, investors should research a list of Web 3.0 apps to determine the best way to invest in the new technology.
Recently, many mainstream asset management firms have applied to launch Bitcoin ETFs, with the world’s largest asset manager BlackRock leading the charge. Now, ProShares has given an overview of their Short Ether Strategy ETF, which will invest in daily contracts that seek to benefit from losses in the S&P CME Ether Futures index. This means that the fund will gain as much as the index loses on a given day, and vice versa.
To stay up to date with the latest developments in the crypto space, investors can check out the best crypto daily, Cointelegraph Crypto, and Circuits of Value Crypto. They can also learn more about investing in Web 3.0, what Web 3.0 apps are available, and the best way to invest in Web 3.0. Additionally, they can keep up with AI This Week to learn more about the latest applications of artificial intelligence.
Subscribe to our email newsletter to get the latest posts delivered right to your email.