Investment management firm VanEck has set a fee of 0.2% for its proposed spot ether exchange-traded fund (ETF), Reuters reported. This announcement, detailed in a US Securities and Exchange Commission (SEC) filing, comes at a time of significant regulatory advancements for cryptocurrency ETFs.

Paving the Way for Ether ETFs

Last month, the SEC approved applications from major exchanges such as Nasdaq, CBOE, and NYSE to list ETFs tied to the price of ether, the second-largest cryptocurrency by market capitalization. This important approval could allow these products to begin trading by the end of the year, offering new opportunities for investors.

VanEck is one of nine issuers, including notable names like ARK Investments/21Shares and BlackRock, seeking to launch these Ether ETFs. The competition in this sector highlights a growing interest in providing investors with easier access to cryptocurrency investments without the direct ownership and associated risks of holding cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term like Ethereum.

A spot ether ETF like the one proposed by VanEck allows investors to gain exposure to ether's price movements without managing and storing the digital assets themselves. This simplification is expected to attract a broader range of investors seeking to avoid the technical and security challenges of direct ownership of crypto.

Last year, VanEck entered the Ethereum blockchain space after launching VanEck Ethereum Strategy ETF (EFUT). The company mentioned that this fund, structured as a C-Corp, seeks to enhance how investors could benefit from the future of Ethereum Ethereum Ethereum is an open source, blockchain-based distributed computing platform and operating system featuring smart contract functionality. Created in 2014, Ethereum now stands as the second largest cryptocurrency by market cap at the time of writing.As a decentralized cryptocurrency network and software platform, Ethereum represents the most prominent altcoin. Ethereum also enables the creation Distributed Applications, or dapps. Understanding EthereumEthereum boasts its own programming language, Ethereum is an open source, blockchain-based distributed computing platform and operating system featuring smart contract functionality. Created in 2014, Ethereum now stands as the second largest cryptocurrency by market cap at the time of writing.As a decentralized cryptocurrency network and software platform, Ethereum represents the most prominent altcoin. Ethereum also enables the creation Distributed Applications, or dapps. Understanding EthereumEthereum boasts its own programming language, Read this Term (ETH. EFUT focuses on ETH futures contracts and offers investors an investment opportunity that reportedly provides a tax advantage in the long term.

VanEck Ethereum Strategy ETF

Specifically, EFUT invests in standardized, cash-settled ETH futures contracts traded on commodity exchanges registered with the CFTC. Initially, the fund will focus on ETH futures traded on the Chicago Mercantile Exchange.

Last month, the crypto industry achieved a significant milestone when the SEC approved the listing of ether ETFs on American exchanges. However, the agency has yet to approve trading of these assets, Finance Magnates reported.

The regulator must approve the S-1 forms filed by potential fund issuers for these assets to be allowed to trade. The S-1 registration forms contain detailed information about new securities to be offered to the public. For ETFs, these forms include the fund’s structure, management, and investment strategy, along with details on the methods of tracking the performance of the underlying assets.