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Ether ETFs pending — Grayscale, VanEck and others file SEC applications

August 2, 2023 Coin Telegraph

asset managers

A handful of United States asset managers have filed fresh applications to launch ETH futures ETFs.

Six major asset managers, including Grayscale and VanEck, have filed fresh applications in a bid to launch Ether (ETH) futures exchange-traded funds (ETF) to United States customers.

Separate filings submitted to the U.S. Securities and Exchange Commission reviewed by Cointelegraph outline respective applications from the likes of Grayscale, VanEck, Bitwise, Volatility Shares, ProShares and Round Hill Capital.

We officially have 5 different #Ethereum futures ETF filings submitted to the SEC. Would love to know what has changed since May, other than the fact that someone (Volatility Shares) applied on Friday. ProShares went straight for the inverse/short ETF. https://t.co/Qi8he0OwrU pic.twitter.com/qVVUwrUjOI
— James Seyffart (@JSeyff) August 1, 2023

Grayscale’s filing includes two applications: a proposed Grayscale Global Bitcoin Composite ETF and a Grayscale Ethereum Futures ETF. Grayscale’s Ether ETF will invest in futures contracts that are set to be traded on the Chicago Mercantile Exchange.

The SEC filing notes that Grayscale’s fund will primarily invest “front-month” Ether futures, which are contracts with “the shortest time to maturity.” Grayscale added that it intends to “roll” Ether futures contracts before they expire.

Volatility Shares also outlined plans to list an Ether futures ETF, investing its assets in cash-settled contracts referencing ETH trading on the Chicago Mercantile Exchange. It’s noted that the fund will not invest directly in Ether.

Volatility’s filing also notes that it intends to enter into cash-settled Ether futures contracts as the buyer. Cash-settled futures markets typically see a counterparty pay cash to the buyer if the price of a futures contract goes up, while the buyer would pay the counterparty if the price of the futures contract goes down.

VanEck’s filing also indicates that its investment strategy will look to invest in ETH futures contracts so that the value of ETH that the fund has exposure to is equal to 100% of the total assets of the fund.

The filing notes that any changes in the value of ETH would result in larger changes to VanEck’s Ether ETF fund. This would include the potential for “greater losses than if the Fund’s exposure to the value of ETH were unleveraged.”

ProShares gave an overview of their Short Ether Strategy ETF, which will invest in daily contracts that look to profit on losses of the S&P CME Ether Futures index. As explained, the ProShares fund would gain as much as the index loses on a given day, while the converse would apply.

These applications come in the wake of recent applications from various mainstream asset management firms looking to launch Bitcoin ETFs. The world’s largest asset manager, BlackRock, is among those looking to offer what would be the first Bitcoin (BTC) ETFs offered in the country.

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Asset managers and companies accumulate 1.2M Bitcoin worth $57 billion

August 26, 2021 Coin Telegraph

asset managers

While asset managers have accumulated 4% of Bitcoin’s supply, private and public companies have also amassed 1% each.

Around 6% of Bitcoin’s circulating supply has been accumulated by asset managers and companies, signaling ever increasing mainstream and institutional adoption of crypto assets.

According to Buy Bitcoin Worldwide, 816,379 BTC worth $40.1 billion is currently held by 14 Bitcoin fund issuers and asset managers — representing 4% of the cryptocurrency’s supply.

Industry leader, the Grayscale Bitcoin Trust, represents more than 3% of the Bitcoin supply, managing 654,600 BTC (worth $32 billion). CoinShares’ XBT Provider ranks second with 48,466 BTC ($2.4 billion) representing 0.23% of supply. The 12 remaining issuers represent 113,313 BTC or 0.54% of thesupply combined.

The data provider also tracks 34 public companies that hold BTC on their balance sheets, which collectively command 1% of Bitcoin’s supply.

Half of all Bitcoin held by public companies is in the possession of MicroStrategy, which after adding 3,907 Bitcoin to its stash since the start of July, now holds 108,992 BTC worth $5.3 billion.

Electric vehicle manufacturer Tesla accounts for 20% of the Bitcoin held by private companies, with the firm having accumulated 42,902 BTC worth nearly $2.1 billion.

Private companies have absorbed another 174,068 BTC worth $8.5 million, cornering 0.83% of Bitcoin’s supply. Roughly 80% of BTC stashed away by private companies is held by Block.One — with the firm currently sitting on 140,000 BTC worth $6.8 billion.

Estimates vary among data providers however, with Bitcoin Treasuries tallying 1.4 million BTC on the balance sheets asset manager and companies. A further 260,000 BTC are attributed to the balance sheets of national governments.

Bitcoin’s supply will cap at 21 million BTC, with analysts estimating the final Bitcoin will be mined in the year 2140. At the time of writing, roughly 18.8 million BTC are in circulation. However access to one fifth of all Bitcoin (or more) is believed to have been lost, meaning that asset managers and companies may control an even greater share of the supply.

While large entities are gobbling up BTC, Ethereum has appeared to have been undergoing a supply shock of its own in the wake of its London upgrades that introduced a burn mechanism to the crypto asset’s fee market.

According to Watch The Burn, 97,369 Ether worth $313.5 million has been destroyed in the 21 days since London, meaning that roughly 4,637 ETH are being burned daily on average. Overall, Ethereum’s burn mechanism has resulted in 35% a net reduction in the number of newly minted Ether entering supply.

asset managers