U.S.-based asset manager Valkyrie is requesting regulatory approval from the U.S. Securities and Exchange Commission (SEC) for an ether futures exchange-traded fund (ETF). The move follows the acceptance by the SEC of Valkyrie’s application for a spot bitcoin ETF last month.
Asset Manager Valkyrie Seeks Regulatory Nod for Ether Futures ETF
Tennessee-headquartered asset management firm Valkyrie is applying for authorization for an “Ethereum Strategy ETF” that will invest in ether futures and other collateral assets, Reuters reported quoting documents filed with the U.S. securities regulator.
The submission comes amid increased interest from well-established players in the sector in launching crypto-based ETFs, which has become a cause for optimism in the crypto space after a difficult year for the whole digital assets industry.
U.S. regulators allowed ETFs tracking the price of bitcoin (BTC) futures in 2021 and the first bitcoin futures-based exchange-traded fund began trading in October of that year. Expectations that the product could increase investments in crypto assets boosted market prices at the time.
However, authorities in the United States are yet to approve a spot bitcoin ETF, something that Canada, for example, has already done. The SEC has in the past rejected a number of applications for such ETFs but in mid-July of this year agreed to review one filed by financial powerhouse Blackrock.
Soon after that, the Commission formally accepted Valkyrie’s spot bitcoin ETF application as well. The company, which was already offering a bitcoin futures ETF, submitted its application for its “Valkyrie Bitcoin Fund” on June 21, days after the filing for Blackrock’s “Ishares Bitcoin Trust.”
Last week, Galaxy Digital CEO Mike Novogratz revealed that the U.S. SEC could approve a spot bitcoin exchange-traded fund within six months. Meanwhile, London-headquartered company Jacobi Asset Management introduced Europe’s first spot bitcoin ETF on the Euronext Amsterdam exchange.
Do you expect the SEC to approve Valkyrie’s application for an ether futures ETF? Tell us in the comments section below.
