Valkyrie will offer exposure to Ether futures as SEC delays spot Bitcoin ETF

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Sep 29

Asset management firm Valkyrie will begin offering exposure to Ether (ETH) futures to United States investors through its existing Bitcoin Strategy exchange-traded fund, or ETF.

A Valkyrie spokesperson told Cointelegraph on Sept. 28 that the firm's Bitcoin Strategy ETF will allow investors access to Ether and Bitcoin (BTC) futures "under one wrapper," making it one of the first firms to do so amid several pending applications with the U.S. Securities and Exchange Commission. Starting Oct. 3, the fund's name will be updated to the Valkyrie Bitcoin and Ether Strategy ETF.

At the time of publication, the SEC had not published a proposed rule change allowing the listing of a new Ether futures ETF on the Nasdaq Stock Exchange. However, the commission released an order regarding "additional analysis" over the listing of the Valkyrie Bitcoin Fund — a spot BTC ETF.

The jockeying has begun in full as Valkyrie announcing they are buying Ether futures for $BTF today (ahead of formal name change on Tue). In related news, hearing that some issuers are ready to launch Monday morning, unclear how many yet, but at least a couple. Game on. https://t.co/I1FiVU58RZ

— Eric Balchunas (@EricBalchunas) September 28, 2023

Valkyrie filed an application with the SEC on Aug. 16 for a fund not offering a direct investment in Ether but through ETH futures contract. The firm also offers a Bitcoin Miners ETF, tracking securities of companies that derive their revenue or profits from crypto mining, and was also one of the first companies in the U.S. to launch an ETF tied to BTC futures in 2021.

Bloomberg Intelligence analyst James Seyffart has speculated that Ether futures ETFs could begin trading in the first week of October, partly in response to a potential U.S. government shutdown. Should members of Congress be unable to vote on a bill funding the government into the next fiscal year with enough time for U.S. President Joe Biden to sign it into law by Sept. 30, the SEC and many other federal agencies will be reduced to a skeleton crew.

UPDATE: Okay here we go. Those other 7 Spot #Bitcoin filings (which includes @BlackRock as many have poitned out) that are due for decision in mid October are getting their delay orders. Starting to trickle in. First up @ValkyrieFunds! pic.twitter.com/xywjwLlojT

— James Seyffart (@JSeyff) September 28, 2023

To date, the SEC has not approved any spot crypto ETF for trading in the United States, but many experts have suggested that its position could change following Grayscale Investments winning a review of its spot BTC ETF in court. Valkyrie and several other firms — including BlackRock — have applications pending for spot crypto ETFs.

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