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Asset management company Valkyrie has announced that it will wait for the United States Securities and Exchange Commission to authorize an exchange-traded fund, or ETF, that provides exposure to Ether (ETH) futures instead of making prior purchases.
In a filing with the SEC dated Sept. 29, Valkyrie indicated that it would refrain from certain acquisitions “until the effectiveness of an amendment” that incorporates ETH futures contracts as the ETF’s primary investment strategy. The firm informed Cointelegraph on Sept. 28 of its intention to offer investors exposure to both Ether and Bitcoin (BTC) through a combined Bitcoin and Ether Strategy ETF, with purchases anticipated prior to a launch in the first week of October.
“The Fund will liquidate any current positions in ether futures contracts,” stated the SEC filing.
The situation has become more complex; Valkyrie has just disclosed that they will indeed not purchase Ether futures until they are operational (likely Tuesday) and will divest the Eth futures they previously acquired (in an attempt to expedite the process). The SEC must have warned them to cease this action. Interesting. https://t.co/yDkggCw3d1 pic.twitter.com/cKaV7k7AJs
— Eric Balchunas (@EricBalchunas) September 29, 2023
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Cointelegraph attempted to contact Valkyrie but did not receive a reply by the time of publication. It remains uncertain what prompted the firm to alter its stance in under 24 hours. Valkyrie submitted a filing to the SEC to list an Ether futures ETF on the Nasdaq Stock Market in August, but the regulator has yet to make a decision regarding a proposed rule change that would permit the investment vehicle.
Related: Enter the Ether: VanEck releases two ETF advertisements ahead of a potential Monday launch
Multiple ETFs that provide exposure to Ether futures are anticipated to commence trading in the first week of October, including those from VanEck, Bitwise, and ProShares. However, on Sept. 28, the SEC postponed its decision on a proposal for a spot BTC ETF from Valkyrie, along with proposals from BlackRock, Invesco, and Bitwise.
The delays occurred weeks before the SEC’s scheduled ETF deadlines, with many speculating that the regulator was responding to a possible U.S. government shutdown. Congress members have until Sept. 30 to introduce a bill that would fund the government into the next fiscal year for U.S. President Joe Biden to enact.
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