Fund Manager Valkyrie Adds Ethereum Futures to Bitcoin Strategy ETF
Valkyrie, a fund manager, has received approval to include Ethereum futures as part of its Bitcoin Strategy exchange-traded fund (ETF). This move makes it the first US ETF to offer exposure to both Ether and Bitcoin futures contracts under one wrapper. The company has already started acquiring Ethereum futures contracts and plans to launch the offering on October 3. As a result, the Valkyrie Bitcoin Strategy ETF will be renamed the Valkyrie Bitcoin and Ether Strategy ETF, with the ticker remaining as BTF. Valkyrie was one of the first companies in the US to introduce a BTC futures-linked fund in 2021.
VanEck Also Approved for Ethereum Futures ETF
The SEC has approved VanEck’s Ether Futures ETF, providing another option for investors looking to gain exposure to Ether futures. The VanEck Ethereum Strategy ETF (EFUT) will invest in conventional ETH futures contracts traded on commodity exchanges regulated by the CFTC. The ETF will be listed on CBOE and joins VanEck’s list of ETFs, including the VanEck Bitcoin Strategy ETF (XBTF) launched in November 2021. While an official launch date has not been announced, VanEck plans to provide updates through its X account.
SEC Delays Approval of Spot Crypto ETFs
The SEC has only approved futures ETFs for Bitcoin and Ethereum thus far and has not indicated when it will approve spot crypto ETFs backed directly by crypto assets. The agency has extended deadlines for approvals in some cases, including those for spot Ethereum funds from VanEck and ARK 21Shares, which have been moved to December 25 and 26 respectively. On the spot Bitcoin ETF front, applications from Blackrock, ARK 21Shares, Invesco, Bitwise, and Valkyrie have all been delayed by the SEC.
Hot Take: Increasing Opportunities for Crypto ETFs
The approval of Ethereum futures ETFs from Valkyrie and VanEck reflects the increasing demand for investment products that provide exposure to cryptocurrencies. While spot crypto ETFs are still awaiting approval, the availability of futures-based options allows investors to participate in the crypto market indirectly. These developments open up new opportunities for both institutional and retail investors to diversify their portfolios and potentially benefit from the growth of cryptocurrencies. As regulatory frameworks continue to evolve, it is expected that more companies will seek approval for various crypto-related ETFs, further expanding the options available to investors.
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