Valkyrie Delays Purchase of Ether Futures Until SEC Approves Exchange-Traded Fund
Summary:
Valkyrie, an asset management firm, has announced it will wait for the United States Securities and Exchange Commission's (SEC) approval of an Ether futures-anchored Exchange-Traded Fund (ETF) before proceeding with purchases. This marks a shift from its September 28 communication when the firm proposed a plan to offer Bitcoin and Ether under a blended ETF strategy. The firm has also committed to liquidating any existing positions in Ether futures contracts. Valkyrie had applied for an Ether futures ETF listing on the Nasdaq in August, but the SEC's decision on this application remains pending.
Valkyrie, an asset management company, has declared its intention to await approval from the United States Securities and Exchange Commission (SEC) for an exchange-traded fund (ETF) tied to Ether (ETH) futures, rather than pre-empting such a decision with early purchases. In a document submitted to the SEC on September 29, Valkyrie held off on certain acquisitions, specifying it would not proceed until an amendment endorsing ETH futures contracts as the primary strategy for the proposed ETF had been ratified. Prior to this, Valkyrie had unveiled plans on September 28 to offer investors an opportunity to gain from Ether and Bitcoin (BTC), under a blended Bitcoin and Ether Strategy ETF that was to be launched in early October.
Moreover, any extant positions in ether futures contracts would be liquidated, as per the SEC submission by Valkyrie. However, contrary to prior plans, the company now intends to defer the purchasing of Ether futures until it receives official permission from the SEC and will sell the Eth futures that were purchased earlier. The underlying reasons for Valkyrie's change in stance within a day's time remain uncertain. Valkyrie had applied to the SEC in August to list an Ether futures ETF on the Nasdaq Stock Market, but the regulator is yet to rule on the proposed amendment that would sanction the investment strategy.
It is expected that several ETFs with Ether futures exposure, including VanEck, Bitwise, and ProShares, will commence trading in the opening week of October. However, the SEC postponed its verdict on Valkyrie's 'spot' BTC ETF request on September 28, along with proposals by BlackRock, Invesco, and Bitwise. Strikingly, these delays came weeks ahead of the SEC's scheduled ETF deadlines, leading some to believe the move was in response to a potential U.S. government shutdown. Now, members of Congress have until September 30 to propose a bill for the upcoming fiscal year, which will need the approval of the United States President, Joe Biden.
Published At
9/29/2023 4:33:52 PM
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