Breaking News: Valkyrie Files Ether Futures ETF Application with SEC
On August 16, asset management company Valkyrie filed an application for an ether futures exchange-traded fund with the US Securities and Exchange Commission.
Asset management firm Valkyrie has filed with the US Securities and Exchange Commission for an ether futures ETF. Documents dated Aug. 16 show the filing is a follow-up to the company’s earlier move to change its investment strategy to comply with regulators’ rules. According to the filing, the ETF will not invest directly in ether. Instead, it will acquire various ETH contracts. Ether is the native currency of the Ethereum blockchain, used to conduct peer-to-peer payments within the decentralized network.
Ether can be considered a digital currency or currency depending on the specific transactions in which it is used. The document states that ether can be used as a medium of exchange or a unit of account. It is also noted that while ether is accepted by some large and small retailers in the United States, its use for commercial and retail payments is still relatively small. Valkyrie has filed an Ether Futures Exchange Traded Fund (ETF) in addition to the 497 application they filed to change the name/strategies from $BTF to Bitcoin + Ether Futures. This is to spread their message sooner. Maybe that’s a sign the SEC won’t let them do the old $MJ maneuver, I’m not sure.
Valkyrie just filed for an Ether Futures ETF, which is in addition to their 497 filing to do name/strategy of $BTF to Bitcoin + Ether Futures to get out early. Perhaps this is sign SEC not letting them do the 'ole $MJ maneuver, not sure.. ht @NateGeraci pic.twitter.com/OeyGuyJP3y
— Eric Balchunas (@EricBalchunas) August 16, 2023
In addition to investing in ether futures, the ETF will invest its remaining assets directly in cash, cash-like instruments, or high-quality securities , including bills issued by the US government, bills and bonds, and money market funds and corporate bonds.
Valkyrie’s filing states that the ETF can only invest up to 8,000 contracts per month in ether futures contracts. This is in line with the position limits set by the Chicago Mercantile Exchange. Futures contracts are standard agreements to buy or sell an asset in the future at a specific price. Investors can bet on future Ether prices through the ETF, subject to approval.
It was previously reported that six major wealth managers had submitted similar applications to offer ether futures as an ETF to U.S.-based clients, including Grayscale VanEck Bitwise Volatility Shares ProShares Round Hill Capital. This wave of applications follows high expectations that US regulators will soon approve a spot bitcoin ETF in the country. Several investment firms, including Wall Street titans BlackRock and Fidelity, are applying for regulatory approval.
