Ethereum ETF: Valkyrie Halts Purchase Of ETH Futures Contracts

2 months ago

Asset absorption steadfast Valkyrie, 1 of the frontrunners for the archetypal Ethereum ETF (exchange-traded fund) successful the United States, has decided to intermission its acquisition of Ether futures contracts until the US Securities and Exchange Commission approves an Ether futures ETF. This comes hardly a time aft the plus manager reportedly secured support to connection investors exposure to Ether futures nether its existing strategy ETF (BTF).

SEC Might Be Behind This Action, Bloomberg Expert Speculates

On Friday, September 29, Valkyrie filed a 497 with the SEC, saying that it would halt the acquisition of Ether futures contracts and unwind its existing positions. 

A portion of the filing read:

Effectively immediately, The Fund volition not acquisition ether futures contracts until the effectiveness of an amendment to the Fund’s registration connection contemplating the summation of ether futures contracts to the main concern strategy of the Fund. Until specified time, the Fund volition unwind immoderate existing positions successful ether futures contracts.

As reported connected Thursday, September 28, the SEC appears to beryllium fast-tracking the support of Ethereum futures ETF successful anticipation of a imaginable US authorities shutdown adjacent week. 

Following this report, Valkyrie disclosed that it had begun purchasing Ether futures contracts for its combined strategy ETF up of a imaginable motorboat adjacent week.

However, this latest enactment poses questions astir the likelihood of Valkyrie becoming 1 of the archetypal firms to present an Ethereum ETF successful the United States. 

Bloomberg expert Eric Balchunas has enactment guardant a imaginable crushed for Valkyrie’s determination to halt and unwind its Ether futures purchases. “SEC indispensable person threatened them to chopped it out,” Balchunas speculated via a station connected X (formerly Twitter).

The crippled thickens, Valkyrie conscionable enactment retired 497 that they are successful information not going to bargain Ether futures until they are unrecorded (prob Tue) and are going to merchantability the Eth futures they bought (in an effort to leap enactment a bit). SEC indispensable person threatened them to chopped it out. Damn.

— Eric Balchunas (@EricBalchunas) September 29, 2023

Valkyrie filed its unsocial Ethereum ETF application with the SEC successful August. The plus manager seeks to person its existing Bitcoin Strategy ETF (BTF) to a combined Bitcoin and Ether futures ETF.

Nine Ethereum ETFs To Launch Next Week?

According to Eric Balchunas’ analysis, astir 9 Ethereum ETFs volition perchance commencement trading connected Monday, October 2. Notably, plus manager ProShares owns 3 of these funds, with 2 being combined Bitcoin and Ethereum ETFs.

VanEck is different frontrunner for the archetypal Ether futures ETFs successful the US. The concern manager precocious announced its volition to donate 10% of profits from its Ethereum ETF (EFUT) to The Protocol Guild, a compensation program for Ethereum halfway contributors.

VanEck wrote connected X (formerly Twitter): 

If TradFi stands to summation from the efforts of Ethereum’s halfway contributors, it makes consciousness that we besides springiness backmost to their work. We impulse different plus managers/ETF issuers to see besides giving backmost successful the aforesaid way.

Big announcement!

We mean to donate 10% of our $EFUT ETF profits ( to @ProtocolGuild for astatine slightest 10 years.

Thank you, Ethereum contributors, for astir a decennary of relentless gathering & ongoing stewardship of this communal infrastructure.

Details 👇

— VanEck (@vaneck_us) September 29, 2023

It is worthy mentioning that the ETH terms has seen immoderate reprieve since quality of the imaginable Ethereum ETF motorboat started making rounds. As of this writing, Ether is valued astatine $1,676, reflecting a important 5% terms leap successful the past week.

Ethereum ETF

Ethereum terms continues betterment connected the regular timeframe | Source: ETHUSDT illustration connected TradingView

Featured representation from Unsplash, illustration from TradingView

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