Ethereum Futures ETFs Set to Launch in 2025: Six Asset Managers Compete with Prices in Focus
In 2025, six leading asset managers have submitted applications to the SEC to introduce Ethereum futures ETFs, expected to debut as early as October, offering new investment opportunities in ETH futures.
Leading U.S. asset managers including Grayscale, VanEck, Bitwise, Volatility Shares, ProShares, and Round Hill Capital have all filed applications with the U.S. Securities and Exchange Commission (SEC) to launch Ethereum futures exchange-traded funds (ETFs). These ETFs would allow investors to gain exposure to Ether (ETH) futures contracts rather than holding the cryptocurrency directly.
Highlights to Know
- Six major asset managers have applied for Ethereum futures ETFs with the SEC.
- Most ETFs propose long exposure to ETH futures, except ProShares, which aims to offer a short ETH futures strategy.
- Pending regulatory approval, these ETFs could become available to investors as soon as October 2024.
Volatility Shares initiated this fresh wave of Ethereum futures ETF filings last Friday, followed swiftly by five other firms by the following Tuesday. Unlike traditional ETFs holding the underlying asset, these funds will track the price movements of ETH futures contracts traded on the Chicago Mercantile Exchange (CME).
Grayscale’s filings include two ETFs: one focused on Bitcoin-related assets and another targeting Ether futures contracts. The first Bitcoin futures ETFs were introduced in October 2021, and in June 2023, Volatility Shares launched the pioneering leveraged Bitcoin ETF through its 2x Bitcoin Strategy ETF (BITX).
In a unique move, ProShares has proposed an ETF designed to short ETH by investing in daily inverse contracts tied to the S&P CME Ether Futures index. This fund would profit when the price of ETH futures declines, providing investors with a tool to hedge or speculate on downward price movements.
To date, the SEC has not approved any Ethereum ETFs in the U.S. The approval of these futures-based ETH ETFs would mark a significant milestone, potentially launching in October 2024.
It is important to distinguish these futures-based Ethereum ETFs from recent Bitcoin ETF proposals by BlackRock and others, which are backed by spot Bitcoin rather than futures contracts.
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