Valkyrie to Introduce Ether Futures to US Investors via its Bitcoin Strategy ETF
Summary:
Asset management firm Valkyrie will provide Ether futures exposure to US investors through its Bitcoin Strategy ETF. The fund will be renamed as Valkyrie Bitcoin and Ether Strategy ETF from October 3. The move makes Valkyrie one of the first to offer such a service amid many pending applications with the SEC. However, despite no approval yet for any spot crypto ETFs for trading in the US, analysts expect this could change following successful reviews of a similar product by Grayscale Investments.
Valkyrie, an asset management firm, will debut Ether (ETH) futures exposure to U.S. investors via its existing Bitcoin Strategy exchange-traded fund (ETF). According to a statement made to Cointelegraph by a spokesperson from Valkyrie on September 28, the company's Bitcoin (BTC) Strategy ETF will provide investors with an opportunity to partake in ETH and BTC futures within a consolidated framework. This initiative makes Valkyrie one of the premier entities to take this step, amid several pending applications to the U.S. Securities and Exchange Commission (SEC). From October 3, the fund will be renamed to Valkyrie Bitcoin and Ether Strategy ETF. Currently, the SEC has not revealed any proposed amendments permitting the enlistment of a fresh Ether futures ETF on the Nasdaq Stock Exchange. However, the SEC has issued an order concerning extra scrutiny over the listing of Valkyrie's Bitcoin Fund—a spot BTC ETF.
On August 16, Valkyrie submitted an application to the SEC for a fund that does not provide direct Ether investment, but via ETH futures contracts. Furthermore, the firm provides a Bitcoin Miners ETF, which tracks securities of businesses that earn revenue or profits from cryptocurrency mining. The firm was also one of the earliest in the U.S. to initiate an ETF linked to BTC Futures in 2021. James Seyffart, an analyst from Bloomberg Intelligence, had inferred that Ether futures ETFs might commence trading in early October, partially due to a potential government shutdown in the U.S. If Congress members fail to pass a bill financing the government into the impending fiscal year in a timely manner, the SEC and numerous other federal bodies will be minimally staffed.
So far, no spot crypto ETF has been authorized for trading in the U.S. by the SEC. However, many professionals believe this position might alter following Grayscale Investments' victory in the appellate court to review its spot BTC ETF. Several other companies, including Valkyrie and BlackRock, have pending applications for spot crypto ETFs.
Published At
9/28/2023 8:43:14 PM
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