Asset Manager Valkyrie Seeks Regulatory Nod for Ether Futures ETF
Tennessee-headquartered asset management firm Valkyrie is applying for authorization for an “Ethereum Strategy ETF” that will invest in ether futures and other collateral assets, Reuters reported quoting documents filed with the U.S. securities regulator.
Key Points:
- Valkyrie is seeking regulatory approval for an Ethereum Strategy ETF.
- The ETF will invest in ether futures and other collateral assets.
- Increased interest in crypto-based ETFs is providing optimism in the industry.
- The U.S. has allowed bitcoin futures-based ETFs but not a spot bitcoin ETF.
- Galaxy Digital CEO predicts approval for a spot bitcoin ETF within six months.
U.S. regulators allowed ETFs tracking the price of bitcoin (BTC) futures in 2021 and the first bitcoin futures-based exchange-traded fund began trading in October of that year. Expectations that the product could increase investments in crypto assets boosted market prices at the time.
However, authorities in the United States are yet to approve a spot bitcoin ETF, something that Canada, for example, has already done. The SEC has in the past rejected a number of applications for such ETFs but in mid-July of this year agreed to review one filed by financial powerhouse Blackrock.
Soon after that, the Commission formally accepted Valkyrie’s spot bitcoin ETF application as well. The company, which was already offering a bitcoin futures ETF, submitted its application for its “Valkyrie Bitcoin Fund” on June 21, days after the filing for Blackrock’s “Ishares Bitcoin Trust.”
Last week, Galaxy Digital CEO Mike Novogratz revealed that the U.S. SEC could approve a spot bitcoin exchange-traded fund within six months. Meanwhile, London-headquartered company Jacobi Asset Management introduced Europe’s first spot bitcoin ETF on the Euronext Amsterdam exchange.
Hot Take:
The demand for crypto-based ETFs continues to grow, with asset management firm Valkyrie seeking regulatory approval for an Ethereum Strategy ETF. While the U.S. has allowed bitcoin futures-based ETFs, the approval of a spot bitcoin ETF is still pending. However, industry experts remain optimistic, with Galaxy Digital CEO predicting approval within six months. As more players enter the market, such as Jacobi Asset Management with Europe’s first spot bitcoin ETF, the crypto industry is poised for further growth and mainstream adoption.
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