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In a submitting dated August 4, Valkyrie applied so as to add an Ethereum futures ETF to its Bitcoin Strategy ETF (BTF). However, it might appear this transfer was pushed again by the SEC because the asset supervisor has now filed a separate utility to supply an Ether futures ETF.  

Valkyrie Moves To Offer Ethereum Futures ETF

In an application dated August 16, Valkyrie seeks the United States Securities and Exchange Commission’s (SEC) approval to supply an Ethereum futures exchange-traded fund (ETF). 

If accepted, the fund won’t instantly spend money on Ether. Instead, it would give attention to buying a number of ether futures contracts to match the overall worth of the ether underlying the futures contracts with the web belongings of the fund. 

While this fund is comparatively much like the Bitcoin futures ETF, which has existed since 2021, it differs from the Spot Bitcoin ETF, which distinguished institutional corporations have filed for. Spot ETFs monitor the crypto asset’s value, whereas futures ETFs give attention to the asset’s future contracts. 

Valkyrie categorically famous this reality as a part of its utility and acknowledged that buyers seeking to spend money on the worth of ether instantly ought to take into account investments apart from this explicit fund.

The utility additionally highlighted the dangers concerned in investing on this fund as, in accordance with Valkyrie, “the Fund’s investments could decline rapidly, including to zero.” As such, buyers ought to perceive that they may lose their total funding. 

As is frequent with functions comparable to this, candidates should show to the SEC that the underlying asset has a regulated market of serious measurement. And Valkyrie’s submitting acknowledged that its fund can be guided by the futures contracts traded on the Chicago Mercantile Exchange (CME). 

ETH value recovers to $1,685 | Source: ETHUSD on TradingView.com

No First Mover Advantage?

Valkyrie didn’t make clear the standing of its preliminary submitting in its most up-to-date utility. The asset supervisor had beforehand tried so as to add ETH futures contracts to its Valkyrie Bitcoin Strategy ETF (BTF) in a bid to realize a first-mover benefit over different candidates. 

Several different asset managers, together with Bitwise, ProfessionalShares, Grayscale, and Volatility Shares, have additionally utilized to supply an Ethereum futures ETF. However, it stays unsure in what order the SEC is prone to approve (if it does) these functions, particularly with this latest improvement. 

Just like Cathie Wood has suggested relating to the pending Spot Bitcoin ETF functions, the SEC can approve a number of functions directly, which is able to doubtless eradicate the primary mover benefit, or it may determine to approve them within the order through which these functions got here in. 

Despite expectations that the regulator will approve an Ether ETF this 12 months, the likelihood of the SEC approving any of those functions stays unsure as optimism dwindles. 

Featured picture from iStock, chart from TradingView.com