Valkyrie's Dual Crypto Strategy ETF Launch

Martin Walker
Sep 29, 2023 at 10:38 am

Valkyrie, a prominent asset management firm, is gearing up to broaden its horizons and offer a more diversified investment portfolio to investors in the United States. This expansion involves introducing exposure to Ether (ETH) futures, aligning with their existing Bitcoin Strategy exchange-traded fund (ETF). In the realm of market fluctuations, the ticker for Ether currently hovers at $1,672, while Bitcoin (BTC) is represented by a ticker valued at $27,030.

In an official statement on September 28, a representative from Valkyrie articulated that their Bitcoin Strategy ETF will not only continue to provide access to Bitcoin futures but will also encompass Ether futures, all neatly "wrapped up" in a single investment product. This forward-thinking move positions Valkyrie as a pioneering entity, standing among the first firms to seamlessly combine these offerings. The initiative comes amidst a flurry of pending applications awaiting the discerning approval of the U.S. Securities and Exchange Commission (SEC). With effect from October 3, the fund is slated for a rebranding, transforming into the more encompassing Valkyrie Bitcoin and Ether Strategy ETF.

As of the current publication, the SEC's stance on the potential listing of a new Ether futures ETF on the Nasdaq Stock Exchange remains undisclosed. However, the commission has released an order necessitating "additional analysis" concerning the potential listing of the Valkyrie Bitcoin Fund — an ETF intricately tied to spot BTC.

Valkyrie took a significant step forward by submitting an application to the SEC on August 16. Their application outlines a unique investment approach, steering away from a direct investment in Ether. Instead, they propose an indirect investment avenue through ETH futures contracts. On another front, the firm also offers a Bitcoin Miners ETF, designed to track the securities of companies deriving their revenue or profits from the realm of crypto mining. Remarkably, Valkyrie was among the early adopters in the U.S., launching an ETF specifically tied to BTC futures back in 2021.

Notable market analyst James Seyffart, affiliated with Bloomberg Intelligence, speculates that the exciting world of Ether futures ETFs may very well kickstart trading activities in the first week of October. This speculation is partly spurred by the potential implications of a U.S. government shutdown. If Congress falters in passing a crucial bill for government funding, ensuring adequate time for President Joe Biden to sign it into law by September 30, numerous federal agencies, including the SEC, could find themselves operating with skeletal staff.

Adding a layer of intrigue to the narrative, the SEC has yet to give the green light for any spot crypto ETFs to commence trading in the United States. However, the evolving landscape, coupled with Grayscale Investments' recent success in securing a favorable court review of its spot BTC ETF, has ignited discussions and raised hopes that the SEC's stance might evolve. Notably, Valkyrie, along with a cohort of other firms, including the esteemed BlackRock, awaits the outcome of their pending applications for spot crypto ETFs.

You might also like: Bitcoin ETF Hurdles and Hope: SEC Updates

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