1 year ago
In a filing dated August 4, Valkyrie applied to adhd an Ethereum futures ETF to its Bitcoin Strategy ETF (BTF). However, it would look this determination was pushed backmost by the SEC arsenic the plus manager has present filed a abstracted exertion to connection an Ether futures ETF.
Valkyrie Moves To Offer Ethereum Futures ETF
In an application dated August 16, Valkyrie seeks the United States Securities and Exchange Commission’s (SEC) support to connection an Ethereum futures exchange-traded money (ETF).
If approved, the money volition not straight put successful Ether. Instead, it volition absorption connected purchasing respective ether futures contracts to lucifer the full worth of the ether underlying the futures contracts with the nett assets of the fund.
While this money is comparatively akin to the Bitcoin futures ETF, which has existed since 2021, it differs from the Spot Bitcoin ETF, which salient organization firms person filed for. Spot ETFs way the crypto asset’s price, portion futures ETFs absorption connected the asset’s aboriginal contracts.
Valkyrie categorically noted this information arsenic portion of its exertion and stated that investors looking to put successful the terms of ether straight should see investments different than this peculiar fund.
The exertion besides highlighted the risks progressive successful investing successful this money as, according to Valkyrie, “the Fund’s investments could diminution rapidly, including to zero.” As such, investors should recognize that they could suffer their full investment.
As is communal with applications specified arsenic this, applicants indispensable beryllium to the SEC that the underlying plus has a regulated marketplace of important size. And Valkyrie’s filing stated that its money would beryllium guided by the futures contracts traded connected the Chicago Mercantile Exchange (CME).
No First Mover Advantage?
Valkyrie failed to clarify the presumption of its archetypal filing successful its astir caller application. The plus manager had antecedently tried to adhd ETH futures contracts to its Valkyrie Bitcoin Strategy ETF (BTF) successful a bid to summation a first-mover vantage implicit different applicants.
Several different plus managers, including Bitwise, ProShares, Grayscale, and Volatility Shares, person besides applied to connection an Ethereum futures ETF. However, it remains uncertain successful what bid the SEC is apt to o.k. (if it does) these applications, particularly with this caller development.
Just similar Cathie Wood has suggested regarding the pending Spot Bitcoin ETF applications, the SEC tin o.k. aggregate applications astatine once, which volition apt destruct the archetypal mover advantage, oregon it tin determine to o.k. them successful the bid successful which these applications came in.
Despite expectations that the regulator volition o.k. an Ether ETF this year, the probability of the SEC approving immoderate of these applications remains uncertain arsenic optimism dwindles.
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