Valkyrie Sparks Excitement With New Ethereum Futures ETF Application

Key Points:

• Valkyrie seeks an Ethereum futures ETF, adding to crypto investment strides.
• Ether Strategy ETF debut nears with Volatility Shares’ October launch.
• ProShares Bitcoin ETF thrives, but the SEC is still cautious on Bitcoin spot ETFs.

Valkyrie Investments, a prominent crypto-focused asset management firm, is making waves in the investment world as it seeks to introduce an Ethereum futures exchange-traded fund (ETF).

Senior ETF analyst at Bloomberg, Eric Balchunas, shared the news via Twitter, unveiling Valkyrie’s application for an ETF tied to Ethereum futures. This comes hot on the heels of their earlier submission of Document 497, aimed at transforming their Bitcoin + Ethereum futures ETF.

Last month, Valkyrie had already taken a significant step by filing an application with the US Securities and Exchange Commission (SEC) for a Bitcoin spot ETF – a fund tied directly to the current price of Bitcoin. This differs from the Bitcoin futures ETF, which hinges on contracts tied to future BTC prices.

The anticipation in the cryptocurrency realm has reached palpable levels with the upcoming launch of the Ether Strategy ETF (ETHU) by Volatility Shares, slated for October 12, 2023. This landmark moment would mark the first-ever Ether-based exchange-traded fund in the United States.

Reflecting on history, the US witnessed the inauguration of its maiden Bitcoin futures ETF on October 19, 2021, with ProShares leading the way. The move paid off tremendously, with a total of $1.3 billion in Bitcoin futures ETF assets.

Notably, the lion’s share, approximately $1.1 billion, finds its home in the ProShares Bitcoin Strategy ETF (BITO). The ProShares Short Bitcoin Strategy ETF follows with $73 million, while no other ETF manages more than $50 million in assets.

Notably, the US SEC has maintained its reluctance to approve any applications for a Bitcoin spot ETF thus far, underscoring the regulatory landscape’s cautious stance.

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