Set off a boom in Ethereum futures ETF applications? Inventory of seven ethereum futures ETF filing companies

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Source: DecryptCompilation: BitpushNews Mary LiuThe heat around spot bitcoin exchange-traded funds (ETFs) has cooled off recently, with issuers and investors still waiting for U.S. regulators to approve the investment vehicle, and ethereum futures ETF filings have sprung up.Seven companies have submitted applications for an ethereum ETF, according to public filings. ETFs tracking ethereum futures essentially invest in futures contracts for the industry's second-largest cryptocurrency, traded on the CFTC-regulated Chicago Mercantile Exchange (CME), rather than holding the underlying asset directly.Whether these filings will be reversed, and whether the SEC will approve them, remains an open question, especially given regulators’ recent crackdown on the crypto industry and the SEC’s classification of nearly all cryptocurrencies (except Bitcoin) as securities .### Volatility Shares: Ethereum Strategy ETFSubmission Date: 07/27/2023SEC Response: 10/11/2023Listed exchange: CBOE BZX ExchangeVolatility Shares, which manages four exchange-traded funds worth $173.5 million, could become the first ethereum-focused ETF issuer after it outlined its plans in a July 28 filing with the SEC.The firm's proposed ether strategy ETF (ETHU) complies with the provisions of the 1940 Act Governing Investment Policy and Capital Structure and invests up to 25% of its assets in cash-settled ether futures contracts traded on the CFTC-regulated Chicago Mercantile Exchange (CME Group Place).Additionally, the fund may invest in reverse purchase agreements and shares of other investment companies, but not ethereum directly, according to the filing.The fund plans to list and primarily trade its shares on the CBOE BZX exchange.The proposed ETHU filing follows the launch of the Volatility Shares 2x Bitcoin Strategy ETF (BITX), the first leveraged Bitcoin futures ETF, launched by the Mt. Kisco, New York, company in June.### Bitwise: Ethereum Strategy ETFSubmission date: August 1, 2023SEC Response: October 16, 2023Listing exchange: NYSE ArcaAfter withdrawing its initial application in May, Bitwise reapplied for the Ethereum Strategy ETF (ETHG) on Aug. 1. According to the filing, ETHG intends to invest in cash-settled front-month, or shortest-to-expiration, ETH futures contracts without direct exposure to the current spot price of ether.Under the Investment Company Act of 1940, the fund is classified as a "non-diversified" fund, meaning it is able to invest a higher proportion of its assets in financial instruments with a single counterparty or a small number of counterparties.The document details that the fund will not invest directly in ETH futures contracts; instead, investments will be made through a wholly-owned subsidiary operating under the laws of the Cayman Islands.In addition, because the Bitwise Ethereum Strategy ETF intends to receive the treatment of a regulated investment company, the size of the fund's investment in the subsidiary will not exceed 25% of its total assets at the end of each quarter of this fiscal year.Despite such a low allocation, the fund achieves its investment objective primarily by investing in ETH futures contracts, while the remaining 75% of assets are expected to be invested in U.S. Treasury and other U.S. government bonds, as well as money market funds, cash and cash equivalents such as high-quality Commercial paper.### Roundhill: Roundhill Ethereum Strategy ETFSubmission date: August 1, 2023SEC Response: October 16, 2023Listing exchange: not specifiedNew York-based Roundhill Investments is an SEC-registered investment advisor focused on providing innovative financial products with investment themes designed to appeal to the next generation of investors.The firm currently manages eight ETFs with total assets of $662 million and is looking to expand its offering with the launch of the Roundhill Ether Strategy ETF.According to a filing dated Aug. 1, the Roundhill Ether Strategy ETF is an actively managed fund that seeks capital appreciation by investing in front-month ether futures contracts listed on the CME.Similar to Bitwise, the fund plans to invest up to 25% of its assets in wholly-owned subsidiaries organized under Cayman Islands law.### VanEck: VanEck Ethereum Strategy ETFSubmission date: August 1, 2023SEC Response: October 16, 2023Listing exchange: not specifiedVanEck, also one of the hopes for a spot bitcoin ETF, appears to be investing heavily in ethereum: according to an Aug. 1 filing, the VanEck Ethereum Strategy ETF plans to invest roughly 100% of the total value of ETH in its total assets.If, for reasons such as exceeding position limits or liquidity constraints, the fund is unable to achieve the target exposure, it may invest in equity securities of ETH-related companies, that is, companies listed on U.S. stock exchanges that the fund advisor believes will provide returns. The performance of ETH futures corresponds or closely correlates."For example, the fund may invest in U.S.-listed companies that provide digital asset trading platforms," the filing reads.In addition to ETH futures, the VanEck Ethereum Strategy ETF is expected to hold “substantial holdings” in cash and fixed-income investments designed to provide liquidity and serve as collateral for the fund’s ETH futures, and to engage in “active and active investing.” Frequent transactions of the portfolio. "### Proshares: Short Ethereum Strategy ETF and ProShares Ethereum Strategy ETFSubmission date: August 1, 2023SEC Response: October 16, 2023Listing exchange: not specifiedOn Aug. 1, ETF issuer ProShares filed for two different ethereum-focused ETFs: the Short Ether Strategy ETF and the ProShares Ethereum Strategy ETF.The former seeks daily investment results that correspond to the inverse (-1x) of the daily performance of the S&P CME Ether Futures Index, while the latter provides capital appreciation primarily by managing exposure to CME-listed Ether futures contracts, with an investment objective of "non-fundamental "sexual", meaning that the board can change it without the approval of the fund's shareholders.Similar to the Bitwise Ethereum Strategy ETF, Proshares' Ethereum Futures ETF seeks to qualify as a regulated investment company, meaning the fund will invest no more than 25% of its corresponding subsidiary (which will also be based in the Cayman Islands). % of total assets at the end of each quarter of the financial year.### Grayscale: Grayscale Ethereum Futures ETFSubmission date: August 1, 2023SEC Response: October 16, 2023Listing exchange: not specifiedOn May 9, Grayscale Investments announced the establishment of Grayscale Funds Trust, a Delaware statutory trust structure that includes three new funds: Grayscale Ethereum Futures ETF, Grayscale Global Bitcoin. Composite ETF and Grayscale Privacy ETF.Just a week later, the company filed an amendment to its SEC filing to remove references to an ethereum futures ETF, but reapplied for the offering on Aug. 1.The updated document states that the Ethereum Futures ETF is an actively managed fund that achieves its investment objectives primarily by holding Ethereum futures contracts purchased by its Cayman Islands subsidiary.The fund also plans to hold about 100% of its net assets in ethereum futures contracts, though it may also hold significant cash and cash equivalent investments such as U.S. Treasury bills or repurchase agreements.### Direxion: Bitcoin Ethereum Strategy ETFSubmission date: August 2, 2023SEC Response: October 17, 2023Listing exchange: not specifiedThe proposed Direxion Bitcoin Ether Strategy ETF would invest in bitcoin and ether futures contracts, subject to regulatory approval, according to a U.S. Securities and Exchange Commission (SEC) filing. The ETF may also invest in other ETFs that have exposure to futures products.Founded in 1997, Direxion has a strong reputation in the field of traditional financial ETFs, specializing in creating investment products for investors looking beyond traditional products. Their index-based products provide investors with directional options, extended exposure, and rules-based long-term strategies. As of March 31, 2023, Direxion managed approximately $27.5 billion in assets.