NEW YORK, BRONX (ORDO News) — Investment manager Valkyrie Funds LLC has received approval from the U.S. Securities and Exchange Commission (SEC) to add Ethereum futures to its existing Bitcoin futures exchange-traded fund (ETF).
The renamed Valkyrie Bitcoin and Ether Strategy ETF will launch on Monday, making it the first ETF to offer futures based on Ethereum (ETH) contracts to investors.
Boost for the Crypto Market
This move marks a significant milestone for the cryptocurrency market, as it allows investors to access Ethereum futures through an ETF structure. Ethereum, often referred to as “ether,” is the second-largest cryptocurrency by market capitalization.
Rival asset managers VanEck and ProShares are also planning to launch pure Ethereum futures ETFs. While Valkyrie’s ETF is a hybrid that includes both Bitcoin and Ethereum futures, VanEck and ProShares aim to provide investors with ETFs solely focused on Ethereum futures. The SEC has reportedly informed VanEck and ProShares that they, too, can launch their ETFs on Monday.
The SEC’s decision to approve Ethereum futures ETFs signifies a positive development for the crypto industry, which has been advocating for expanded ETF offerings. Additionally, various companies have submitted applications to launch spot Bitcoin ETFs, although none have received approval as of yet.
Impact on Ethereum’s Price
Reports of the SEC’s potential approval of Ethereum futures ETFs have contributed to a recent price increase for the cryptocurrency. Over the past week, Ethereum prices have risen nearly 6%, with a 3.3% jump observed on Thursday.
Steve Sosnick, Chief Strategist at Interactive Brokers, noted that it remains uncertain whether this price surge is a result of early buying in Ethereum futures by Valkyrie or traders speculating on future trading.
The launch of the Valkyrie Bitcoin and Ether Strategy ETF and the upcoming Ethereum futures ETFs from VanEck and ProShares are expected to offer investors more exposure to cryptocurrency markets through regulated investment products.
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News agencies contributed to this report, edited and published by ORDO News editors.
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