Featured image from iStock, chart from TradingView.com<\/div>\n","protected":false},"excerpt":{"rendered":"
In a filing dated August 4, Valkyrie applied to add an Ethereum futures ETF to its Bitcoin Strategy ETF (BTF). However, it would seem this move was pushed back by the SEC as the asset manager has now filed a separate application to offer an Ether futures ETF.\u00a0\u00a0 Valkyrie Moves To Offer Ethereum Futures ETF In an application dated August 16, Valkyrie seeks the United States Securities and Exchange Commission’s (SEC) approval to offer an Ethereum futures exchange-traded fund (ETF).\u00a0 If approved, the fund will not directly invest in Ether. Instead, it will focus on purchasing several ether futures contracts to match the total value of the ether underlying the futures contracts with the net assets of the fund.\u00a0 Related Reading: Post-Hack Shenanigans: Curve (CRV) To Launch On TRON Following $2 Million Investment While this fund is relatively similar to the Bitcoin futures ETF, which has existed since 2021, it differs from the Spot Bitcoin ETF, which prominent institutional firms have filed for. Spot ETFs track the crypto asset’s price, while futures ETFs focus on the asset\u2019s future contracts.\u00a0 Valkyrie categorically noted this fact as part of its application and stated that investors looking to invest in the price of ether directly should consider investments other than this particular fund. The application also highlighted the risks involved in investing in this fund as, according to Valkyrie, \u201cthe Fund\u2019s investments could decline rapidly, including to zero.\u201d As such, investors should understand that they could lose their entire investment.\u00a0 As is common with applications such as this, applicants must prove to the SEC that the underlying asset has a regulated market of significant size. And Valkyrie\u2019s filing stated that its fund would be guided by the futures contracts traded on the Chicago Mercantile Exchange (CME).\u00a0 ETH price recovers to $1,685 | Source: ETHUSD on TradingView.com No First Mover Advantage? Valkyrie failed to clarify the status of its initial filing in its most recent application. The asset manager had previously tried to add ETH futures contracts to its Valkyrie Bitcoin Strategy ETF (BTF) in a bid to gain a first-mover advantage over other applicants.\u00a0 Several other asset managers, including Bitwise, ProShares, Grayscale, and Volatility Shares, have also applied to offer an Ethereum futures ETF. However, it remains uncertain in what order the SEC is likely to approve (if it does) these applications, especially with this recent development.\u00a0 Related Reading: Ledger Users Can Now Buy Crypto Directly Using PayPal Just like Cathie Wood has suggested regarding the pending Spot Bitcoin ETF applications, the SEC can approve multiple applications at once, which will likely eliminate the first mover advantage, or it can decide to approve them in the order in which these applications came in.\u00a0 Despite expectations that the regulator will approve an Ether ETF this year, the probability of the SEC approving any of these applications remains uncertain as optimism dwindles.\u00a0 Featured image from iStock, chart from TradingView.com<\/p>\n","protected":false},"author":594,"featured_media":547903,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[13625],"tags":[1944,89155,1946,10384,7931,8686,78803,85373],"class_list":["post-547876","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-ethereum","tag-etf","tag-eth-etf","tag-ethereum","tag-ethereum-etf","tag-ethereum-news","tag-ethusd","tag-ethusdt","tag-valkyrie"],"acf":[],"yoast_head":"\n
Valkyrie Taps Into Ethereum Momentum With New ETF Filing<\/title>\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\t \n\t \n\t \n