Valkyrie Moves To Offer Ethereum Futures ETF
Valkyrie has applied to the SEC to offer an Ethereum futures exchange-traded fund (ETF), separate from its previous application to add Ethereum futures to its Bitcoin Strategy ETF.
Key Points:
– The proposed Ethereum futures ETF will not directly invest in Ether but will purchase futures contracts to match the total value of the underlying asset.
– Unlike spot ETFs that track the price of the crypto asset, futures ETFs focus on future contracts.
– Valkyrie emphasized that investors seeking direct exposure to the price of Ether should consider other investment options.
– The application highlighted the risks involved, stating that the fund’s investments could decline rapidly, potentially to zero.
– Valkyrie stated that the futures contracts traded on the Chicago Mercantile Exchange (CME) would guide its fund.
No First Mover Advantage?
Valkyrie did not provide an update on its initial filing to include Ethereum futures in its Bitcoin Strategy ETF. Other asset managers, including Bitwise, ProShares, Grayscale, and Volatility Shares, have also applied to offer an Ethereum futures ETF, but it is unclear in what order the SEC will approve these applications.
Hot Take:
The approval of an Ether ETF by the SEC this year remains uncertain, and the recent development of multiple applications adds further uncertainty. The SEC could approve multiple applications simultaneously or in the order they were filed, eliminating any first-mover advantage. Optimism for approval is dwindling.
By
By
By
By