0

Valkyrie will offer exposure to Ether futures as SEC delays spot Bitcoin ETF

  • September 28, 2023

Asset management firm Valkyrie will begin offering exposure to Ether (ETH) futures to United States investors through its existing Bitcoin Strategy exchange-traded fund, or ETF.

A Valkyrie spokesperson told Cointelegraph on Sept. 28 that the firm’s Bitcoin (BTC) Strategy ETF will allow investors access to ETH and BTC futures “under one wrapper”, making it one of the first firms to do so amid several pending applications with the U.S. Securities and Exchange Commission (SEC). Starting on Oct. 3, the fund’s name will be updated to the Valkyrie Bitcoin and Ether Strategy ETF.

At the time of publication, the SEC had not published a proposed rule change allowing listing a new Ether futures ETF on the Nasdaq Stock Exchange. However, the commission released an order regarding “additional analysis” over the listing of the Valkyrie Bitcoin Fund — a spot BTC ETF.

Valkyrie filed an application with the SEC on Aug. 16 for a fund not offering a direct investment in Ether but through ETH futures contract. The firm also offers a Bitcoin Miners ETF, tracking securities of companies that derive their revenue or profits from crypto mining, and was also one of 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

Bloomberg Intelligence analyst James Seyffart had speculated that Ether futures ETFs would begin trading in the first week of October partly in response to a potential U.S. government shutdown. Should members of Congress be unable to vote on a bill funding the government into the next fiscal year with enough time for U.S.President Joe Biden to sign it into law by Sept. 30, the SEC and many other federal agencies will be reduced to a skeleton crew.

To date, the SEC has not approved any spot crypto ETF for trading in the United States, but many experts have suggested that position could change following Grayscale Investments winning a review of its spot BTC ETF in court. Valkyrie, along with several other firms including BlackRock, have applications pending for spot crypto ETFs.

Magazine: Ethereum is ‘woefully undervalued’ but growing more powerful: DeFi Dad, Hall of Flame