Ethereum
Ethereum Fever Rises as Issuers Offer New ETFs
ETF Investment Tools
Ethereum fever has increased over the past two trading days, with two companies submitting applications for new funds based on ether’s performance, and a third issuer setting its fees for an Ethereum spot exchange-traded fund.
Rex Actions propose separate long and inverse ETFs that depend on the performance of Ethereum spot funds that have not yet launched. A Roundhill Ether Covered Call Strategy ETF fund goals to provide income but also “exposure to the price performance of one or more exchange-traded funds with exposure to ether.”
“The Fund will purchase and sell a combination of call and put options contracts that use an Ether Futures ETF as its reference asset,” Roundhill’s S-1 registration statement states.
Neither Rex nor Roundhill products will invest directly in ether, the native cryptocurrency of the Ethereum smart contract blockchain.
Arch, Franklin Templeton
In separate, updated S-1 filings, Franklin Templeton said it would charge a 0.19% fee for its proposed Ethereum spot ETF, but Ark Investment Management was absent from its latest filing for a similar product that it initially proposed with 21Shares, which is now listed as the sole issuer of the product.
The latest developments come as the Securities and Exchange Commission evaluates Ethereum spot applications from eight issuers and amid demand for cryptocurrency-focused assets that has soared this year after the approval of the first Spot Bitcoin ETF.
Learn more: SEC Modifies Ethereum Rule, Sets Stage for ETF Approval | etf.com
Last month, the regulator authorized a rule change that significantly increased the likelihood that new Ethereum spot products would begin trading in the not-so-distant future. Bitcoin spot products have generated nearly $14 billion in inflows since their launch on January 11, according to UK-based Farside Investors.
Ether was recently trading at $3,780, up a few fractions of a percentage point over the past 24 hours, according to cryptocurrency markets provider CoinMarketCap. It is up 23% over the past month as optimism about Ethereum’s one-time approval has grown. Bitcoin also rose slightly compared to the previous day.
The new T-Rex backgrounds
The T-Rex 2X Long Ether Daily Target ETF and the T-Rex 2X Inverse Daily Target ETF will seek to achieve daily investment objectives that, respectively, “magnify” the performance of Ether and the Inverse of Ether. Ether’s performance with the latter “a result in stark contrast to most mutual funds and ETFs,” according to the S-1. The funds will not invest directly in Ether.
The story continues
At the same time, Ark said in a statement that it continues to believe in the “transformative potential and long-term value of the Ethereum blockchain,” but that “it is not moving forward with an ETF Ethereum.”
“We will continue to evaluate effective ways to provide our investors with exposure to this innovative technology.”
He also said he would remain “fully committed” to the bitcoin spot ETF, which he jointly issued with 21 stocks and which has generated about $2.5 billion in inflows since its unveiling in January.
Permanent link | © Copyright 2024 etf.com. All rights reserved