Valkyrie Files for Ether Futures ETF: All You Need to Know
- Valkyrie filed an application with the United States SEC for an Ether futures ETF on August 16.
- The firm will purchase a number of ETH futures contracts and will not directly invest in Ether (ETH).
- The ETF will also invest its remaining assets directly in cash, cash-like instruments, or high-quality securities.
- Valkyrie has calculated that the contracts will be limited to 8,000 contracts per month, in compliance with the CME.
Valkyrie, a financial services firm that seeks to bridge the gap between the traditional finance industry and the digital asset sector, has filed for a Ether (ETH) futures exchange-traded fund (ETF) amid a rising number of asset management firms filing for spot Bitcoin ETF approval. The filing was submitted to the United States Securities and Exchange Commission (SEC) on August 16.
As per the filing, the new Ether futures ETF is an addition to Valkyrie’s existing Bitcoin futures ETF filing, and the firm is trying to get both of the ETFs approved as early as possible. However, it is a fact that the SEC takes its time when it comes to approving ETFs related to the digital asset sector.
The new Ether futures ETF from Valkyrie will be quite different from a spot ETF, and therefore, approval can be expected. As per the filing, the financial services firm will purchase a number of ETH futures contracts and will not directly invest in Ether (ETH), the world’s second-largest cryptocurrency, which is the native token of the Ethereum blockchain.
The document filed by Valkyrie reads that “Ether may be regarded as a currency or digital commodity depending on its specific use in particular transactions. Ether may be used as a medium of exchange or unit of account,” while adding:
“Although a number of large and small retailers accept ether as a form of payment in the United States and foreign markets, there is relatively limited use of ether for commercial and retail payments. Similarly, ether may be used as a store of value, […] although it has experienced significant periods of price volatility.”
While investing in Ether futures, the ETF will also invest its remaining assets directly in cash, cash-like instruments, or high-quality securities, which include bills, notes, and bonds issued by the U.S. government, along with money market funds and corporate debt securities. Further, Valkyrie has calculated that the contracts will be limited to 8,000 contracts per month, in compliance with position limits established by the Chicago Mercantile Exchange (CME).
As reported earlier by BitcoinWisdom, the SEC has announced a 21-day period for public comments on the ARK Invest and 21Shares Bitcoin ETF and delayed its decision once again. The ETF application was filed in May, and the regulator has 240 days or until January 2024 to make its decision.