Valkyrie Investments Becomes First to Offer Ethereum Futures ETF Valkyrie Investments has made history by winning the race to launch the first exchange-traded fund (ETF) featuring ethereum futures in the United States. This milestone is a significant step forward in mainstreaming digital assets. The asset manager, based in Nashville, is among nine issuers that have obtained approval from the Securities and Exchange Commission (SEC) to offer investors the opportunity to speculate on the future price of the world's second-largest digital asset through an ETF. Ether, the native token of the ethereum blockchain, is currently valued at around $1,650 per token.
Valkyrie, renowned for its Bitcoin Mining ETF, which is currently the top-performing crypto-related ETF in the U.S., will now extend its offerings to include ethereum futures. While investors have previously had the option to purchase actual digital tokens from platforms like Coinbase, the introduction of ETFs is expected to attract more retail participation in cryptocurrency trading, as they can be traded on well-established exchanges such as Nasdaq and the New York Stock Exchange.
The SEC has already allowed the trading of bitcoin ETFs linked to futures contracts since October 2021. However, only a limited number of firms have ventured further into digital asset investing by offering derivatives for ether. Alongside Valkyrie, eight other issuers, including VanEck, Grayscale Investments, and Bitwise, have filed applications to launch ETFs based on ether. Additional players in the financial industry, such as BlackRock and Fidelity, are looking to introduce another type of ETF known as spot bitcoin ETFs.
This would give a broader range of investors access to bitcoin's spot price, rather than its future value, which is currently limited to accredited investors with substantial investable assets. Moreover, three firms have also filed applications to launch spot ether ETFs. The SEC has been cautious about approving spot ETFs, as Chairman Gary Gensler has expressed strong opposition to bringing cryptocurrencies further into the mainstream.
A spot ETF would enable all investors to purchase the product through their brokerage accounts. While bitcoin futures trading has traditionally been reserved for accredited investors, a spot ETF would make it accessible to a wider audience. Recently, the SEC postponed its decision on Ark 21Shares' proposed rule change to launch its own spot bitcoin ETF, as well as Global X ETF's application. Other pending applications, including BlackRock's, have decision deadlines set for mid-October, but industry experts anticipate further delays by the SEC. Valkyrie's strategy involves converting its existing bitcoin futures ETF into a combined fund that includes both bitcoin and ether futures.
The fund will be renamed the Valkyrie Bitcoin and Ether Strategy ETF, while the Nasdaq ticker symbol BTF will remain the same. The fund plans to begin purchasing ether futures opportunistically on Thursday, with the name change scheduled to take effect on Tuesday. "We are excited to be the first to offer ether futures to our investors, as interest in this asset has experienced tremendous growth over the past year," said Steven McClurg, Chief Investment Officer of Valkyrie, in a statement to FOX Business.
Originally planning for an October 3 launch, Valkyrie decided to expedite the launch of its ethereum futures ETFs due to the potential government shutdown on Friday. With the SEC possibly scaling back operations in such a scenario, the accelerator was necessary. Unless there is a resolution on funding, the federal government is expected to halt most operations on Saturday, resulting in the furlough of nearly two million federal workers.
