Asset management firm Valkyrie is set to offer Ethereum investments through its existing Bitcoin Strategy exchange-traded fund (ETF). A Valkyrie spokesperson stated on September 28 that the Bitcoin Strategy ETF will enable investors to purchase both Ethereum and Bitcoin futures in a single package. This move positions Valkyrie as one of the first companies to provide such an offering amid several pending filings with the U.S. Securities and Exchange Commission (SEC). Starting from October 3, the fund will be renamed the Valkyrie Bitcoin and Ethereum Strategy ETF.
As of the time of this announcement, the SEC has not yet released proposed rule changes that would allow a new Ethereum futures ETF to be listed on the Nasdaq stock exchange. However, the commission issued an order for "additional analysis" of the listing of the Valkyrie Bitcoin Fund, which is a spot BTC ETF. Valkyrie submitted an application to the SEC on August 16, outlining its plan to create a fund that doesn't invest directly in Ethereum but rather utilizes ETH futures contracts. Additionally, Valkyrie already offers a Bitcoin Miners ETF, tracking securities of companies profiting from cryptocurrency mining. The company was among the first in the U.S. to launch an ETF linked to BTC futures in 2021.
Bloomberg Intelligence analyst James Seyffart has speculated that an Ethereum futures ETF could commence trading in early October, potentially in preparation for a possible U.S. government shutdown. In case lawmakers fail to vote on a bill to fund the government for the next fiscal year and President Joe Biden signs it into law by September 30, many federal agencies, including the SEC, will operate with a skeleton crew.
To date, the SEC has not approved any spot crypto ETFs for trading in the United States. However, experts suggest that this stance could evolve following a court review of Grayscale Investments' spot BTC ETF. Numerous firms, including Valkyrie and BlackRock, are filing for spot crypto ETFs.
