Valkyrie, a U.S.-based asset manager, is seeking the green light from the U.S. Securities and Exchange Commission (SEC) to launch an ether futures exchange-traded fund (ETF). This request comes on the heels of the SEC’s approval of Valkyrie’s application for a spot bitcoin ETF just last month.
The Tennessee-based asset management company Valkyrie is looking to gain approval for an “Ethereum Strategy ETF,” intending to invest in ether futures and other related assets, according to documents filed with the U.S. securities governing body, as reported by Reuters.
This move reflects the growing interest from major players in the financial sector in introducing crypto-based ETFs. Such enthusiasm is providing a positive outlook for the cryptocurrency industry, which had been experiencing a challenging period.
In 2021, U.S. regulators approved ETFs that followed the price of bitcoin (BTC) futures, with the first bitcoin futures-based ETF making its debut in October that year. This development spurred expectations that the product could lead to increased investments in the crypto market, positively impacting market prices at that time.
Despite these developments, the U.S. authorities have not yet given the green light to a spot bitcoin ETF, a move that other countries like Canada have already taken. The SEC has previously turned down multiple applications for spot bitcoin ETFs but in mid-July of the current year, agreed to consider one submitted by financial giant Blackrock.
Following this, the SEC also formally approved Valkyrie’s spot bitcoin ETF application. Valkyrie, already involved in offering a bitcoin futures ETF, submitted its application for the “Valkyrie Bitcoin Fund” on June 21, shortly after Blackrock’s application for the “Ishares Bitcoin Trust.”
Just last week, Galaxy Digital’s CEO, Mike Novogratz, indicated that the U.S. SEC might approve a spot bitcoin ETF within the next half year. Simultaneously, Jacobi Asset Management, a company based in London, unveiled Europe’s inaugural spot bitcoin ETF on the Euronext Amsterdam exchange.
The prospect of Valkyrie obtaining approval for an ether futures ETF from the SEC remains uncertain and is a subject of interest in the investment community. Feel free to share your thoughts and expectations on this development in the comments section.
Frequently Asked Questions (FAQs) about fokus keyword: Valkyrie
What is Valkyrie seeking approval for from the U.S. Securities and Exchange Commission (SEC)?
Valkyrie is seeking approval from the SEC for an ether futures exchange-traded fund (ETF), an investment product that would invest in ether futures and other related assets.
Has the SEC previously approved any crypto-based ETFs?
Yes, the SEC has allowed ETFs tracking the price of bitcoin (BTC) futures in 2021, and the first bitcoin futures-based ETF began trading in October of that year.
How does Valkyrie’s application for an ether futures ETF fit into the broader trend in the crypto industry?
Valkyrie’s application reflects a growing interest from major players in the financial sector in introducing crypto-based ETFs, providing optimism in the crypto space after a difficult year.
What has been the SEC’s stance on spot bitcoin ETFs?
The U.S. authorities have not yet approved a spot bitcoin ETF, although they have approved futures-based products. In mid-July of the current year, the SEC agreed to review a spot bitcoin ETF application filed by Blackrock, and subsequently approved Valkyrie’s spot bitcoin ETF application.
What are other notable developments in the world of crypto-based ETFs?
Besides U.S. developments, Europe’s first spot bitcoin ETF was introduced on the Euronext Amsterdam exchange by London-headquartered Jacobi Asset Management. Additionally, Galaxy Digital’s CEO, Mike Novogratz, revealed that the U.S. SEC could approve a spot bitcoin ETF within six months.
More about fokus keyword: Valkyrie
- U.S. Securities and Exchange Commission
- Valkyrie Investments
- Euronext Amsterdam exchange
- Galaxy Digital
- Ishares Bitcoin Trust