Valkyrie Funds Halts Buying of Ethereum for ETF
Financial services firm Valkyrie Funds LLC has announced that it will cease buying ethereum for the Valkyrie Bitcoin and Ether Strategy ETF and will unwind any existing positions in the cryptocurrency. This decision comes as a setback in its attempt to launch the first exchange traded fund (ETF) tied to ethereum.
In a filing with the Securities and Exchange Commission, Valkyrie stated that the fund will not purchase ether futures contracts until an amendment to its registration statement is approved. The amendment would allow for the inclusion of ether futures contracts in the fund’s investment strategy.
Valkyrie had previously received approval to acquire ethereum futures contracts as part of its plan to convert an existing ETF focused on Bitcoin to include exposure to ethereum. However, further details regarding this decision have yet to be released.
Other Companies Prepare to Launch Ethereum ETFs
VanEck, ProShares, and Invesco have also filed applications to list ETFs tied to ethereum. It is anticipated that these companies will begin launching their offerings from Monday onwards.
Hot Take: Valkyrie Faces Hurdles in Launching Ethereum ETF
Valkyrie Funds LLC’s decision to halt buying ethereum for its proposed ETF is a setback in its bid to be the first company to bring an ethereum-focused ETF to the market. While Valkyrie had received initial approval, it must now await an amendment to its registration statement before proceeding. This delay provides an opportunity for competitors like VanEck, ProShares, and Invesco, who have also filed applications for similar ethereum ETFs. The race is on among these financial firms seeking to capitalize on the growing popularity of cryptocurrencies like ethereum.
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