Invesco and Galaxy Digital Join Race for Ethereum ETF Amid Surge in Digital Asset Products
Summary:
Asset managers Invesco and Galaxy Digital have reportedly filed for a spot Ethereum (ETH) exchange-traded fund (ETF), joining a growing number of investment firms seeking regulatory approval for such products. While a spot Ether ETF may take time to launch, futures-based Ether ETFs are expected to debut as early as next week. This includes VanEck's forthcoming Ethereum Strategy ETF and Valkyrie's rebranded Bitcoin and Ether Strategy ETF, which will offer exposure to Ether futures. Bitwise, ProShares, and Kelly ETFs also plan to introduce similar offerings.
Set on the path of digitization, asset managers continue to adopt digital asset products. Invesco and Galaxy Digital join the race as they reportedly lodged an application for a spot Ethereum (ETH) exchange-traded fund (ETF) on September 29, according to Bloomberg's James Seyffart via X (previously known as Twitter). Unfortunately, the claim could not be confirmed through the SEC's public database where the application was expected but had not been listed as of the time of reporting. Eric Balchunas of Invesco Galaxy confirmed the news via a tweet, claiming that it could be the third or fourth such filing relating to an Ether ETF.
Upon inquiring about the application, a representative from Invesco refuted the opportunity to discuss the product, stating that items still under registration could not be commented on. Similarly, attempts to contact Galaxy did not yield immediate responses. Invesco and Galaxy Digital are among numerous investment managers who are vying for regulatory approval to launch a spot Ether ETF. Prior applications from ARK 21Shares and VanEck had been delayed by SEC, pushing the decision deadline further to December 25-26. The SEC announced its need for more time to weigh in on the proposed rule change.
While it might take time for a spot Ether ETF to be introduced, Ether ETFs based on futures are expected to be launched as early as next week. Investment firms such as VanEck have started prepping to add Ether futures vehicles to their portfolios. On September 28, VanEck announced its forthcoming Ethereum Strategy ETF, to be referred to as EFUT, to be listed on Chicago Board Options Exchange in the forthcoming days. Among others, Valkyrie is also set to introduce a futures crypto ETF. Through its existing Bitcoin Strategy ETF, now rebranded as Valkyrie Bitcoin and Ether Strategy ETF, it will offer exposure to Ether futures. The firm's spokesperson affirmed that the move will allow investors to access both Ether and Bitcoin (BTC) futures under one umbrella.
In a similar vein, Bitwise also updated its prospectus for their equal-weight Bitcoin and Ether futures ETF on September 28, expected to be operational next week. Seyffart reported that ProShares and Kelly ETFs, in collaboration with Hashdex, also joined in the race to offer futures Ether ETFs in the coming days. As of this update, Ether was trading at $1,666, buoyed by the excitement over the launch of futures ETFs.
Published At
9/29/2023 5:58:16 PM
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