Valkyrie to Launch First Ethereum Futures ETF
Valkyrie Investments, a leading digital asset management firm, has announced plans to launch the first Ethereum futures exchange-traded fund (ETF) by September 30. This move will make Valkyrie the first company to offer an investment product featuring Ethereum futures. The firm already offers access to Ethereum through its Valkyrie Bitcoin Strategy ETF, which was launched in October 2021 and is listed on the NASDAQ Stock Exchange. Steven McClurg, Co-Founder and Chief Investment Officer of Valkyrie Investment, expressed excitement about offering ether futures to investors and highlighted the growing interest in this asset over the past year.
The ETF Game is Heating Up
Several companies have filed applications with the U.S. Securities and Exchange Commission (SEC) to launch Ethereum ETFs. However, investors are more interested in the offering of an Ethereum spot ETF, which would allow them to directly own Ethereum. Similar to Ethereum spot ETFs, Bitcoin spot ETFs are also considered a more attractive investment option compared to Bitcoin futures ETFs. While there have been seven Bitcoin futures ETFs approved by the SEC, no Ethereum or Bitcoin spot ETF has received approval yet. The SEC may have concerns about risks such as market manipulation, volatility, and fraud associated with these types of investments.
When Spot ETFs?
Although there are numerous pending applications for crypto spot ETFs with the SEC, experts believe that approval is likely in the future. However, ongoing challenges surrounding crypto regulations and concerns about associated risks could delay the review process. The SEC recently postponed decisions on Ethereum spot ETF filings from VanEck and ARK Invest, as well as Bitcoin spot ETF filings from BlackRock, Invesco, and Bitwise. Despite generating headlines and excitement in the crypto community, the news of Valkyrie’s Ethereum futures ETF has had little impact on the price of Ethereum. Attention now turns to the network’s upcoming upgrade, Dencun, scheduled for 2024.
Hot Take: Valkyrie’s Ethereum Futures ETF and the Potential for New Heights
Valkyrie Investments’ plan to launch the first Ethereum futures ETF could have significant implications for the cryptocurrency. By offering investors exposure to Ethereum futures, this move has the potential to attract new institutional and retail investors to the crypto space. While the spotlight is currently on futures ETFs, there is growing anticipation for the approval of spot ETFs that would allow direct ownership of Ethereum. If approved, these spot ETFs could provide easier access to Ethereum for a wider range of investors. As the SEC continues to review applications and navigate regulatory challenges, the crypto community eagerly awaits further developments in the ETF landscape.
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