Valkyrie Seeks SEC Approval For Ether Futures ETF
Valkyrie, a prominent asset management firm, has taken a significant step in the rapidly evolving landscape of cryptocurrency investment products. The company has formally applied to the U.S. Securities and Exchange Commission (SEC) for the establishment of an Ether (ETH) futures exchange-traded fund (ETF). This strategic move comes in the wake of Valkyrie’s previous decision to realign its investment strategy for a Bitcoin (BTC) futures ETF to meet regulatory criteria.
Valkyrie, the asset management company, has applied to the US SEC for an Ether (ETH) futures ETFhttps://t.co/bV7kgZeWgV
— crypto.news (@itscrypto_news) August 17, 2023
ETH Futures Focus
The core strategy outlined in the application centres on the acquisition of multiple ETH futures contracts, differing from direct investment in Ether itself. The intricacies of Ether’s categorization as either a digital commodity or a currency are explored, with a focus on its potential applications in transactions as a medium of exchange or unit of account.
Recognizing the relatively limited commercial and retail use of Ether in transactions, the application also acknowledges its volatile nature and potential as a store of value. As part of the ETF structure, Valkyrie plans to allocate the remaining assets to cash, cash-like instruments, and high-quality securities, encompassing a range of financial instruments such as U.S. government bonds, money market funds, and corporate debt securities.
Valkyrie’s ETF Expansion
Valkyrie’s approach toward Ether futures within the ETF framework is meticulously defined, with investment allocation restricted to 8,000 monthly contracts. This aligns with position limits mandated by the Chicago Mercantile Exchange (CME). These futures contracts entail prearranged agreements to buy or sell an asset at a predetermined price in the future, offering investors the opportunity to speculate on forthcoming Ether prices through the ETF platform.
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Valkyrie’s ventures extend beyond the Ether ETF. The company recently resubmitted an application for a spot Bitcoin exchange-traded fund to the SEC. Notable industry players like BlackRock and Fidelity are also actively pursuing ETF approval, partnering with cryptocurrency exchange Coinbase for surveillance-sharing agreements. Valkyrie aims to transform their existing fund, $BTF, into a dual Bitcoin and Ether ETF by early October. This ambitious timeline places their potential launch ahead of the 13 other entities slated for similar launches.
