Valkyrie Offers Ether Futures Exposure as SEC Delays Bitcoin ETF
Valkyrie, an asset management firm, is set to provide investors in the United States with exposure to Ether (ETH) futures through its Bitcoin Strategy exchange-traded fund (ETF).
A spokesperson from Valkyrie informed Cointelegraph on Sept. 28 that the company’s Bitcoin Strategy ETF will grant investors access to both Ether and Bitcoin (BTC) futures “under one wrapper.” This move makes Valkyrie one of the pioneering firms to offer this type of service, with many other firms currently having pending applications with the U.S. Securities and Exchange Commission. Effective Oct. 3, the fund will rebrand to the Valkyrie Bitcoin and Ether Strategy ETF.
As of now, the SEC is yet to publish a proposed rule change that would permit the listing of a new Ether futures ETF on the Nasdaq Stock Exchange. However, the commission has released an order for “additional analysis” regarding the listing of the Valkyrie Bitcoin Fund, which is a spot BTC ETF.
The jockeying has begun in full as Valkyrie announcing they are buying Ether futures for $BTF today (ahead of formal name change on Tue). In related news, hearing that some issuers are ready to launch Monday morning, unclear how many yet, but at least a couple. Game on. https://t.co/I1FiVU58RZ
— Eric Balchunas (@EricBalchunas) September 28, 2023
Valkyrie submitted an application to the SEC on Aug. 16 for a fund that does not offer direct investment in Ether but through ETH futures contracts. The firm already has a Bitcoin Miners ETF available, which tracks the securities of companies that generate revenue or profits from cryptocurrency mining. Additionally, Valkyrie was among the first companies in the U.S. to launch an ETF tied to BTC futures in 2021.
Related: Breaking: Valkyrie files for Ether futures ETF with the SEC
James Seyffart, an analyst from Bloomberg Intelligence, has suggested that Ether futures ETFs could debut in the first week of October, potentially in response to a possible U.S. government shutdown. If Congress members are unable to vote on a bill to fund the government into the next fiscal year before Sept. 30, and provide enough time for U.S. President Joe Biden to sign it into law, the SEC and other federal agencies will operate with limited staff.
UPDATE: Okay here we go. Those other 7 Spot #Bitcoin filings (which includes @BlackRock as many have poitned out) that are due for decision in mid October are getting their delay orders. Starting to trickle in. First up @ValkyrieFunds! pic.twitter.com/xywjwLlojT
— James Seyffart (@JSeyff) September 28, 2023
Thus far, the SEC has not approved any spot crypto ETFs for trading in the United States. However, following Grayscale Investments’ successful review of its spot BTC ETF in court, many experts believe that the SEC’s stance could change. Valkyrie and several other companies, including BlackRock, have applications waiting for approval for spot crypto ETFs.
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