Asset management firm Valkyrie is set to offer exposure to Ether (ETH) futures to United States investors through its existing Bitcoin Strategy exchange-traded fund (ETF). This move makes Valkyrie one of the first firms to offer both ETH and BTC futures “under one wrapper” to investors. The fund will be renamed the Valkyrie Bitcoin and Ether Strategy ETF starting from October 3.
The Securities and Exchange Commission (SEC) has not yet published a proposed rule change allowing the listing of a new Ether futures ETF on the Nasdaq Stock Exchange. However, the SEC has released an order calling for additional analysis on 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 also offers a Bitcoin Miners ETF and was one of the first companies in the U.S. to launch an ETF tied to BTC futures in 2021.
Bloomberg Intelligence analyst James Seyffart had previously speculated that Ether futures ETFs would begin trading in the first week of October, possibly as a response to a potential U.S. government shutdown. If members of Congress are unable to vote on a bill funding the government into the next fiscal year by September 30, the SEC and many other federal agencies will operate with reduced staff.
To date, the SEC has not approved any spot crypto ETF for trading in the United States. However, experts believe this 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.
Overall, the launch of an Ether futures ETF by Valkyrie represents a significant development in the crypto investment space. It provides investors with the opportunity to gain exposure to both Bitcoin and Ether futures through a single investment vehicle, offering more diversified and convenient options for the growth of their digital asset portfolios.
