According to a Form S-1 filed with the U.S. Securities and Exchange Commission (SEC), asset manager VanEck Digital Assets has filed for an Ethereum Exchange Traded Fund (ETF). Called VanEck Ethereum Trust, it would trade on the exchange Cboe BZX, if approved.
The investment product would track the MVSI CryptoCompare Ethereum Benchmark Rate and would hold physical ETH. As Custodian, VanEck has appointed the Delaware Trust Company.
Per the document, the custodian will hold the physical ETH. If the cryptocurrency trade downwards, VanEck will redeem or sell more shares. Selling the ETH has been ruled out. According to the document:
MV Index Solutions GmbH: MVIS CryptoCompare Ethereum Benchmark Rate and MVIS CryptoCompare Bitcoin Benchmark Rate Licensed to 3iQ
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MV Index Solutions GmbH: MVIS and CryptoCompare Launch the MVIS CryptoCompare Ethereum Benchmark Rate
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