Asset Manager Valkyrie Pauses Ether Futures Contracts Purchase
Valkyrie, an asset management firm aiming to launch the first Ethereum ETF in the US, has decided to halt its purchase of Ether futures contracts. This decision comes as they await approval from the US Securities and Exchange Commission (SEC) for an Ether futures ETF. The pause follows Valkyrie’s recent approval to offer investors exposure to Ether futures under its existing strategy ETF.
Speculation on SEC Involvement
In a filing with the SEC, Valkyrie announced that it would stop purchasing Ether futures contracts and unwind its current positions. Bloomberg analyst Eric Balchunas speculates that the SEC may have pressured Valkyrie into this action. Balchunas made this speculation in a post on X (formerly Twitter).
Nine Ethereum ETFs Set to Launch Next Week
An analysis by Eric Balchunas suggests that about nine Ethereum ETFs could begin trading on October 2. ProShares owns three of these funds, including two combined Bitcoin and Ethereum ETFs. VanEck is another frontrunner for an Ether futures ETF and recently announced that it will donate 10% of profits from its Ethereum ETF to The Protocol Guild.
Positive Impact on ETH Price
The potential launch of Ethereum ETFs has had a positive effect on the price of ETH. As of now, Ether is valued at $1,676, representing a 5% increase in price over the past week.
Hot Take: Valkyrie’s Pause Raises Doubts About First Ethereum ETF
Valkyrie’s decision to pause its purchase of Ether futures contracts raises questions about whether they will be one of the first firms to introduce an Ethereum ETF in the US. With the SEC’s involvement and the upcoming launch of multiple Ethereum ETFs, the competition is fierce. It remains to be seen how this will impact Valkyrie’s chances and the overall landscape of Ethereum ETFs in the US.
By
By
