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Asset management company Valkyrie has submitted an application for an Ether (ETH) futures exchange-traded fund (ETF) to the United States Securities and Exchange Commission. As indicated in documents dated Aug. 16, this filing complements the firm’s earlier initiative to modify its investment approach for a Bitcoin (BTC) futures ETF in accordance with regulatory guidelines.
According to the application, the fund will not make direct investments in Ether but will aim to acquire a selection of ETH futures contracts. Ether serves as the native cryptocurrency of the Ethereum blockchain, facilitating peer-to-peer transactions within the decentralized ecosystem.
“Ether can be classified as either a currency or a digital commodity based on its specific application in certain transactions. Ether may function as a medium of exchange or a unit of account,” the document states, adding that “while several large and small retailers accept ether as a payment method in both the United States and international markets, its use for commercial and retail transactions remains relatively limited. Likewise, ether can serve as a store of value, […] although it has undergone significant price fluctuations.”
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Valkyrie has just submitted a filing for an Ether Futures ETF, which is in addition to their 497 filing to adjust the name/strategy of $BTF to include Bitcoin + Ether Futures for an early exit. This might indicate that the SEC is not permitting them to execute the ‘ole $MJ maneuver, but it remains uncertain.. ht @NateGeraci pic.twitter.com/OeyGuyJP3y
— Eric Balchunas (@EricBalchunas) August 16, 2023
Beyond investments in Ether futures, the ETF will allocate its remaining assets directly into cash, cash-equivalent instruments, or high-quality securities, which encompass bills, notes, and bonds issued by the U.S. government, as well as money market funds and corporate debt securities.
As per Valkyrie’s application, the ETF’s investment in Ether futures contracts will be capped at 8,000 contracts per month, adhering to position limits set by the Chicago Mercantile Exchange. Futures contracts are standardized agreements to buy or sell an asset at a predetermined price at a future date. If approved, investors will have the opportunity to speculate on future Ether prices through the ETF.
Cointelegraph previously reported that at least six other prominent asset managers have also filed to provide an Ether futures ETF to U.S.-based clients, including Grayscale, VanEck, Bitwise, Volatility Shares, ProShares, and Round Hill Capital. This surge of applications follows heightened anticipation that U.S. regulators will soon authorize a spot Bitcoin ETF in the country, with numerous investment firms, including major players like BlackRock and Fidelity, seeking regulatory approval.
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