NEW YORK, BRONX (ORDO News) — Valkyrie Funds LLC, a financial services firm, has announced a delay in purchasing Ethereum for its Valkyrie Bitcoin and Ether Strategy ETF (BTF.O). The firm will also unwind any positions it has already acquired, creating a temporary hurdle in its quest to launch the first exchange-traded fund (ETF) linked to the cryptocurrency Ethereum.
In a filing with the Securities and Exchange Commission (SEC), Valkyrie stated, “The Fund will not purchase ether futures contracts until the effectiveness of an amendment to the Fund’s registration statement contemplating the addition of ether futures contracts to the principal investment strategy of the Fund. Until such time, the Fund will unwind any existing positions in ether futures contracts.”
This decision comes a day after Valkyrie received approval for acquiring Ethereum futures contracts as part of an ETF conversion. Originally, the ETF was tied exclusively to Bitcoin, but the conversion aimed to include Ethereum, which would have made it one of the first ETFs to provide exposure to this cryptocurrency.
Valkyrie expects that the conversion of the ETF will become effective “upon the earlier of October 3, 2023, or the time at which the SEC accelerates effectiveness of the registration statement.”
Meanwhile, other firms like VanEck, ProShares, and Invesco have also filed applications to list various ETFs linked to Ethereum. It is anticipated that these ETFs will begin trading as early as the coming week, subject to regulatory approvals.
The regulatory landscape for cryptocurrency-related financial products is complex and continuously evolving. Delays and adjustments in ETF offerings are common as firms navigate the SEC’s approval process and make the necessary amendments to meet regulatory requirements.
—
Online:
News agencies contributed to this report, edited and published by ORDO News editors.
Contact us: [email protected]
Our Standards, Terms of Use: Standard Terms And Conditions.
To eliminate any confusion arising from different time zones and daylight saving changes, all times displayed on our platforms are in Coordinated Universal Time (UTC).