Recently, the hype surrounding exchange-traded funds (ETFs) for spot Bitcoin trading has cooled down, and issuers and investors are still waiting for approval from US regulatory agencies for this investment tool. However, Ethereum futures ETF filings have emerged like mushrooms after rain.

According to public documents, seven companies have submitted applications for Ethereum ETFs. Tracking Ethereum futures ETFs essentially involves investing in futures contracts for the industry's second-largest cryptocurrency, which are traded on the Chicago Mercantile Exchange (CME) regulated by the CFTC, rather than directly holding the underlying assets.

These follow-up filings may or may not be rejected, and whether or not the SEC approves them remains an unresolved issue, especially considering the recent crackdown on the cryptocurrency industry by regulatory agencies and the fact that the SEC classifies almost all cryptocurrencies (except for Bitcoin) as securities.

Volatility Shares: Ethereum Strategy ETF

Submission Date: 07/27/2023 

SEC Response: 10/11/2023 

Stock exchange: CBOE BZX Exchange

Volatility Shares manages four exchange-traded funds worth $173.5 million. After outlining its plans in a filing submitted to the SEC on July 28th, the company may become the first ETF issuer to focus on Ethereum.

The company's proposed Ether strategy ETF (ETHU) complies with the regulations of the 1940 Investment Company Act and capital structure, and will invest up to 25% of its assets in cash-settled Ether futures contracts traded on the Chicago Mercantile Exchange (CME), which is regulated by the CFTC.

In addition, according to the document, the fund may invest in reverse purchase agreements and stocks of other investment companies, but cannot directly invest in Ethereum.

This fund plans to list on the CBOE BZX exchange and primarily trade its shares.

The proposed ETHU application was launched after the release of the Volatility Shares 2x Bitcoin Strategy ETF (BITX), which is the first leveraged Bitcoin futures ETF, launched by Mt. Kisco company in New York State in June.

Bitwise: Ethereum Strategy ETF

Submission Date:  August 1st, 2023

SEC Response:  October 16, 2023

Stock exchange: NYSE Arca

After withdrawing its initial application in May, Bitwise refiled for the Ethereum Strategy ETF (ETHG) on August 1st. According to the filing, ETHG plans to invest in cash-settled, front-month futures contracts for ETH with the shortest expiration date, without directly touching the current spot price of Ethereum.

According to the Investment Company Act of 1940, the fund is classified as a "non-diversified" fund, which means it can invest a higher percentage of its assets in financial instruments with a single or a few counterparties.

This document details that the fund will not directly invest in ETH futures contracts; instead, investments will be made through a wholly-owned subsidiary operating under the laws of the Cayman Islands.

In addition, due to Bitwise's Ethereum Strategy ETF's plan to obtain treatment from regulated investment companies, the investment scale of the fund in this subsidiary will not exceed 25% of its total assets at the end of each quarter of this fiscal year.

Despite the low configuration, the fund still primarily achieves its investment goals through investing in ETH futures contracts, while the remaining 75% of assets are expected to be invested in US Treasury bonds and other US government bonds, as well as money market funds, cash, and cash equivalents such as high-quality commercial bills.

Roundhill: Roundhill Ethereum Strategy ETF

Submission Date:  August 1st, 2023

SEC Response:  October 16, 2023

Roundhill Investments, headquartered in New York, is a SEC-registered investment advisor that focuses on providing innovative financial products aimed at attracting the investment themes of the next generation of investors.

The company currently manages a total of $662 million in assets across eight ETFs and is seeking to expand its product range by launching the Roundhill Ethereum Strategy ETF.

Similar to Bitwise, the fund plans to invest up to 25% of its assets in wholly-owned subsidiaries formed under Cayman Islands law.

VanEck: VanEck Ethereum Strategy ETF

Submission Date:  August 1st, 2023

SEC Response:  October 16, 2023

Listing Exchange: Not Specified

VanEck is also one of the hopes for a spot Bitcoin ETF, and it seems to be heavily investing in Ethereum: according to a document dated August 1st, the total value of ETH that VanEck Ethereum Strategy ETF plans to invest in is approximately 100% of its total assets.

If the fund is unable to achieve its target exposure due to position or liquidity constraints, it may invest in equity securities of ETH-related companies, which are typically listed on US stock exchanges and are believed by the fund advisor to provide returns that correspond or are closely related to the performance of ETH or ETH futures.

The document states: "For example, the fund may invest in US-listed companies that provide digital asset trading platforms."

除了 ETH 期货外，VanEck 以太坊策略 ETF 预计还将「大量持有」现金和固定收益投资，这些投资旨在提供流动性并作为基金 ETH 期货的抵押品，并参与「积极和主动的投资」。投资组合的频繁交易。

Apart from ETH futures, VanEck Ethereum Strategy ETF is expected to "hold a large amount" of cash and fixed income investments, which are intended to provide liquidity and serve as collateral for the fund's ETH futures, and participate in "active and proactive investments". Frequent trading of the investment portfolio.

Proshares: Short Ethereum Strategy ETF and ProShares Ethereum Strategy ETF

Submission Date:  August 1st, 2023

SEC Response:  October 16, 2023

Stock Exchange: Not specified.

On August 1st, ETF issuer ProShares applied for two different ETFs focused on Ethereum: the Short Ethereum Strategy ETF and the ProShares Ethereum Strategy ETF.

The former seeks daily investment results that correspond to the inverse (-1 x) of the daily performance of the S&P CME Ether Futures Index, while the latter primarily provides capital appreciation by managing exposure to CME-listed Ether futures contracts. The investment objective is "non-fundamental," which means that the board of directors can make changes to it without the approval of the fund's shareholders.

Similar to Bitwise's Ethereum Strategy ETF, Proshares' Ethereum Futures ETF is also seeking to qualify as a regulated investment company, which means that the fund's investment in its respective subsidiaries (also located in the Cayman Islands) will not exceed 25% of the total assets at the end of each fiscal quarter.

Grayscale: Grayscale Ethereum Futures ETF

Submission Date:  August 1st, 2023

SEC Response:  October 16, 2023

On May 9th, Grayscale Investments announced the establishment of Grayscale Funds Trust, a legal trust structure in Delaware, which includes three new funds: Grayscale Ethereum Futures ETF, Grayscale Global Bitcoin Composite ETF, and Grayscale Privacy ETF.

Just one week later, the company submitted an amended filing to the SEC, removing any mention of an Ethereum futures ETF, but then reapplied for issuance on August 1st.

The updated document indicates that the Ethereum futures ETF is an actively managed fund that primarily achieves its investment objectives by holding Ethereum futures contracts purchased through a subsidiary based in the Cayman Islands.

The fund also plans to hold approximately 100% of its net assets in Ethereum futures contracts. However, it may also hold significant investments in cash and cash equivalents, such as US Treasury bills or repurchase agreements.

Direxion: Bitcoin Ethereum Strategy ETF

Submission Date:  August 2nd, 2023

SEC Response:  October 17, 2023

Stock Exchange: Not specified.

According to the Securities and Exchange Commission (SEC) filings, the proposed Direxion Bitcoin Ether Strategy ETF will invest in Bitcoin and Ether futures contracts, subject to regulatory approval. The ETF may also invest in other ETFs with exposure to futures products.

Direxion was founded in 1997 and is well-known in the traditional financial ETF industry, specializing in creating investment products for investors seeking beyond traditional products. Their products are index-based, providing investors with directional choices, expanded risk exposure, and rule-based long-term strategies. As of March 31, 2023, Direxion manages approximately $27.5 billion in assets.

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