In a landmark moment for the digital assets market, investment firms ProShares, VanEck, and Bitwise have each introduced futures-based ETFs tied to the value of ether, the world’s second-largest cryptocurrency.
The first ether futures ETFs have launched two years after the introduction of the first US-listed bitcoin futures ETF.
Coming to market two years after the first US-listed bitcoin futures ETF debuted in October 2021, the three new funds are the ProShares Ether Strategy ETF (EETH US), VanEck Ethereum Strategy ETF (EFUT US), and Bitwise Ethereum Strategy ETF (AETH US).
Each ETF primarily invests in standardized, cash-settled, front-month ether futures contracts trading on regulated exchanges.
Collectively, the new offerings represent another significant step forward in providing mainstream investors with regulated exposure to the ever-expanding world of crypto assets.
Ethereum
Ether is the underlying token of the Ethereum network, the world’s leading smart contract platform. With its robust ecosystem, Ethereum enables developers to build decentralized applications that can reshape industries, eliminate middlemen, and bring greater transparency and efficiency to global systems.
Ether is unlike many other crypto assets in that its value is driven directly by the use of the Ethereum blockchain. Every time people use an application built on Ethereum, they have to pay a fee using the ether token. This fee is returned to ether investors in a manner similar to stock buybacks and dividends, providing an important starting point for valuations.
ProShares
The ProShares Ether Strategy ETF has been listed on NYSE Arca with an expense ratio of 0.95%.
In addition to EETH, ProShares has also introduced two ETFs designed to offer a blended return of bitcoin and ether: the ProShares Bitcoin & Ether Equal Weight Strategy ETF (BETE US), which rebalances monthly to a 50/50 weighting between the two cryptocurrencies, and the ProShares Bitcoin & Ether Market Cap Weight Strategy ETF (BETH US), which rebalances monthly based on the market capitalization of bitcoin and ether.
BETE and BETH are also priced at 0.95%.
VanEck
The VanEck Ethereum Strategy ETF, unlike its counterparts, is actively managed and structured as a C-Corp. The fund is managed by Greg Krenzer, a veteran in the asset trading space.
EFUT is listed on Cboe BZX Exchange and has the cheapest expense ratio amongst its competitors at 0.66%.
Bitwise
The Bitwise Ethereum Strategy ETF has been listed on NYSE Arca with an expense ratio of 0.85%.
Bitwise has also introduced the Bitwise Bitcoin and Ether Equal Weight Strategy ETF (BTOP) which, similar to VanEck’s BETE, rebalances to an equal allocation between bitcoin and ether futures on a monthly basis. BTOP also has an expense ratio of 0.85%.