Asset Management firm VanEck filed for an Ethereum ETF to US SEC. VanEck submits another filling after its previous proposal of Bitcoin ETF gets under SEC review. The goal of VanEck is to offer retail and Institutional traders exposure to Ethereum without direct investment in it. Currently, Ethereum is the second-largest cryptocurrency in terms of the market at $408 billion.
VanEck Ethereum Trust exchange-traded fund issues common shares of beneficial interest that trade on Cboe BZX Exchange (“Exchange”).
As stated in the filing, “The Trust’s investment objective is to reflect the performance of the MVIS CryptoCompare Ethereum Benchmark Rate fewer expenses of the Trust’s operation. In seeking to achieve its investment objective, the Trust will hold Ether(“ETH”) and will value its shares daily based on the reported MVIS CryptoCompare Ethereum Benchmark Rate, which is calculated based on prices contributed by exchanges that the sponsor’s affiliate, MV Index solution GmbH (“MVIS”), believes represent top five Ethereum exchanges based on industry-leading CryptoCompare Exchange Benchmark review report.”
VanEck intends to work alongside Cboe BZX exchange on the proposed offering. This is the same exchange that VanEck has chosen to support Bitcoin ETF. Announced at the end of April that SEC will postpone any decision on the VanEck Bitcoin proposal until next month. SEC has a strong history of dragging when it comes to ETF proposals. Often taking the full time legally allowed to decide 240 days.
SEC has yet to approve Single ETFs in the US. VanEack isn’t first in NA but this approval makes it the first company in the USA to get Ethereum ETF. Regulators north of the border have already approved three Ethers NFTs for Canadian Investors. A trio consisting of Ether ETF CI Galaxy Ethereum, Purpose Ether ETF joins BTC ETH purpose Bitcoin ETF in the Canadian market.
