Valkyrie Files Application for Ethereum ETF Futures
Following the Bitcoin Strategy ETF and Bitcoin Miners ETF, Valkyrie has recently submitted an application for registration of an Ethereum futures exchange-traded fund (ETF) under the name Ethereum Strategy ETF.
Valkyrie files application for Ethereum ETF Futures
According to documents filed with the U.S. Securities and Exchange Commission (SEC) on August 16, Valkyrie Investments has applied for registration of an ETF for Ethereum in the form of futures contracts, continuing its efforts after re-registering the Bitcoin spot ETF back in June.
Previously, Valkyrie had attempted to combine its Bitcoin Futures ETF (known as the Bitcoin Strategy ETF) with an Ethereum Futures ETF, according to filings on August 4. This move aims to integrate both and provide a futures ETF with a benchmark ratio of the BTC/ETH pair. If approved, Valkyrie plans to rename the ETF effective October 3, although the status of this filing was not clarified in the latest documents.
The Ethereum Strategy ETF is set to be listed on the Chicago Mercantile Exchange (CME) and will be subject to certain restrictions imposed by the exchange. For instance, there will be a limit of 8,000 contracts per month, with each contract limiting exposure to 50 ETH. Additionally, the filings emphasize that the fund's assets will not be directly invested in Ethereum.
The race for cryptocurrency ETFs is intensifying. In early August, prominent investment funds such as Volatility Shares, Bitwise, ProShares, VanEck, Roundhill, and Grayscale all filed to offer Ethereum Futures ETFs, following the initial moves sparked by financial giant BlackRock's registration of a Bitcoin spot ETF.
As of now, the SEC has not yet approved any Bitcoin Spot ETFs, while allowing ETFs for Bitcoin Futures with a 2x leverage, marking a contradictory stance that drew criticism from Grayscale's legal team due to the inherently higher risks associated with leveraged products.
In practice, the SEC has previously approved Bitcoin futures-based ETFs, including those from Valkyrie, ProShares, and VanEck in late 2021.
