Valkyrie Files for Ether Futures ETF with SEC

Asset management firm Valkyrie has filed for an Ether futures exchange-traded fund (ETF) called “Valkyrie Ethereum Strategy ETF” with the SEC. The proposed ETF will acquire a portfolio of Ether futures contracts rather than directly investing in Ether. The contracts will be traded on registered commodity exchanges, primarily the CME. The value of these contracts will be determined by the CME CF Ether Reference Rate. The Fund plans to use a rolling strategy to manage the expiration of futures contracts, replacing them with similar contracts with later expiration dates. The Fund will also invest in collateral investments such as cash, money market funds, and high-quality securities.

Options Market Supports BTC and ETH Amid Strong US Economy

Despite the strength of the US economy and the pressure it has put on the cryptocurrency market, the options market continues to provide substantial price support for Bitcoin (BTC) and Ethereum (ETH). Positive gamma has impacted BTC’s price, while market makers’ hedging behavior has supported ETH. However, block traders show a stronger preference for BTC, possibly due to its established position and reputation. Overall, the options market plays a crucial role in supporting both cryptocurrencies amid liquidity pressures.

Closing Thoughts

Valkyrie’s filing for an Ether futures ETF with the SEC shows optimism for a positive decision. The options market’s support for BTC and ETH demonstrates stability despite the challenges posed by the US economy. While block traders favor BTC, both cryptocurrencies have maintained stability thanks to the positive gamma effect and market makers’ hedging actions. Currently, ETH is trading at $1,825, following a downward trend over the past 30 days.