Asset manager Valkyrie has just received the green light from the SEC to add Ether futures contracts (ETH) to its Bitcoin ETF. This is the first exchange-traded fund of its kind approved by the US financial markets regulator.
SEC approves Valkyrie’s application
While the Securities and Exchange Comission (SEC) has just extended the wait for approval of the first spot Bitcoin ETF, it hasn’t put up any resistance to an exchange-traded fund on Ether futures (ETH).
Last August, cryptocurrency investment firm Valkyrie filed an application with the SEC to upgrade its Bitcoin Strategy ETF. Initially based on Bitcoin futures (BTC), the idea was to add Ether futures as well.
According to information initially reported by Reuters, this application has received the stamp of approval from the US regulator. The Valkyrie Bitcoin Strategy ETF is due to be officially updated on October 3, when it will be renamed the Valkyrie Bitcoin and Ether Strategy ETF (BTF).
In response to this news, the price of Ether (ETH) rose by just over 3%, once again approaching the $1,700 technical barrier.
The very first Ethereum futures ETF
Valkyrie marks the launch of the first Ethereum futures ETF in the United States. This type of fund has been anticipated for some time, and SEC approval should most certainly pave the way for other asset managers.
These could include Volatility Shares and its Ether Strategy ETF (ETHU) (filed on October 12), VanEck and the VanEck Ethereum Strategy ETF, or Bitwise and Grayscale.
The Valkyrie Bitcoin and Ether Strategy ETF is likely to trade on Nasdaq. It will support Ether futures contracts traded on the Chicago Mercantile Exchange, as well as some CFTC-registered marketplaces.
Ethereum joins Bitcoin!
Valkyrie’s success in offering exposure to Ether futures comes almost two years after the launch of similar products on Bitcoin.
In October 2021, ProShares had launched its product based on Bitcoin futures contracts, just a few days before Valkyrie and VanEck followed suit. The former enjoyed a precursor advantage that enabled it to rapidly accumulate over a billion dollars in assets under management.
This advantage has now been extended to Valkyrie, raising questions among some observers. Indeed, last May, the SEC explained that it was not ready to accept this type of product, forcing issuers such as Grayscale to withdraw their application.