Amidst the lingering uncertainty surrounding the SEC’s stance on cryptocurrency ETFs, Valkyrie, an asset management firm, has taken advantage of the opportunity. They are now offering U.S. investors access to Ether (ETH) futures through their existing Bitcoin Strategy ETF. This bold move positions Valkyrie as a trailblazer, defying the SEC’s delayed decision-making process regarding crypto ETFs.
On September 28, a spokesperson for Valkyrie made an announcement regarding the Bitcoin Strategy ETF. Moreover, this investment vehicle will now provide exposure to both Ether and Bitcoin (BTC) futures, bringing these assets together in one place. The official transition to the “Valkyrie Bitcoin and Ether Strategy ETF” will take place on October 3, indicating its expanding investment horizon.
The Securities and Exchange Commission (SEC) has not yet disclosed its proposed rule changes to allow the listing of a new Ether futures ETF on the Nasdaq Stock Exchange. However, the commission released an order concerning the Valkyrie Bitcoin Fund, an ETF focused on spot BTC.
In contrast, Valkyrie applied to the SEC on August 16 for a fund that is not directly linked to Ether but instead relies on ETH futures contracts. Furthermore, this shift in strategy complements Valkyrie’s existing portfolio, which includes a Bitcoin Miners ETF tracking companies generating revenue or profits from cryptocurrency mining operations.
Ether Futures ETFs Anticipated Amidst Regulatory Uncertainty
Bloomberg Intelligence analyst James Seyffart speculates that Ether futures ETFs could start trading in early October. This speculation is partly due to concerns about a potential U.S. government shutdown. If Congress fails to pass a bill to fund the government for the next fiscal year, it may lead to a staff shortage at the SEC and other federal agencies.
The Securities and Exchange Commission’s (SEC) historical resistance to approving spot crypto ETFs for trading in the United States has sparked considerable debate. However, there may be a potential shift in the SEC’s position as Grayscale Investments recently obtained a favorable court review for its spot BTC ETF. Valkyrie and other major firms like BlackRock eagerly anticipate the outcome of their applications for spot crypto ETFs.
Valkyrie’s recent move to include Ether futures in its Bitcoin Strategy ETF demonstrates its dedication to providing diverse investment opportunities in the ever-changing crypto landscape amidst regulatory uncertainties. Furthermore, by taking a proactive stance, Valkyrie may lay the groundwork for the entire industry, particularly if the SEC’s stance on crypto ETFs evolves in the near future.
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The author’s views are for reference only and shall not constitute investment advice. Please ensure you fully understand and assess the products and associated risks before purchasing
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