Asset management firm Valkyrie is set to offer exposure to Ether (ETH) futures to investors in the United States through its existing Bitcoin Strategy exchange-traded fund (ETF). This move will make Valkyrie one of the first firms to provide access to both ETH and BTC futures under one wrapper. Starting on October 3, the fund’s name will be changed to the Valkyrie Bitcoin and Ether Strategy ETF.
The Securities and Exchange Commission (SEC) has not yet published a proposed rule change to allow the listing of a new Ether futures ETF on the Nasdaq Stock Exchange. However, the commission has released an order that requires “additional analysis” for the listing of the Valkyrie Bitcoin Fund, a spot BTC ETF.
Valkyrie filed an application with the SEC on August 16 for a fund that does not offer a direct investment in Ether, but instead through ETH futures contracts. The firm has already launched an ETF tied to BTC futures in 2021 and also offers a Bitcoin Miners ETF.
Bloomberg Intelligence analyst James Seyffart speculated that Ether futures ETFs would begin trading in the first week of October, possibly in response to a potential U.S. government shutdown. If Congress fails to vote on a bill to fund the government into the next fiscal year by September 30, the SEC and other federal agencies may be reduced to a skeleton crew.
To date, the SEC has not approved any spot crypto ETF for trading in the United States. However, experts believe that this stance could change following Grayscale Investments winning a review of its spot BTC ETF in court. Valkyrie, along with other firms like BlackRock, has pending applications for spot crypto ETFs.
In conclusion, Valkyrie’s decision to offer Ether futures exposure through its existing Bitcoin Strategy ETF demonstrates the growing demand for diversified cryptocurrency investment options. While the SEC has not yet approved spot crypto ETFs, the success of Grayscale Investments’ BTC ETF review may pave the way for further developments in the market. Investors eagerly await the launch of the Valkyrie Bitcoin and Ether Strategy ETF on October 3, as it will provide a new avenue to gain exposure to the cryptocurrency market.
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