SEC Approves Major ETF: Valkyrie’s Futures Offering Explained

Valkyrie Funds introduces Ethereum futures, bringing innovation and potential for growth to the cryptocurrency market.

Gary Gensler smiling next to an Ethereum coin, infront of a Valkyrie logo.
Created by Gabor Kovacs from DailyCoin
  • A hybrid ETF has just debuted, introducing a fresh dimension for crypto investors.
  • Rival asset managers have also embarked on a similar path, indicating a shift toward pure ether futures.
  • The SEC’s surprising shift has unlocked doors for the expansion of the crypto industry.

Valkyrie Funds LLC, an investment manager, has incorporated Ethereum futures into its existing Bitcoin futures exchange-traded fund. This development comes after receiving approval from the U.S. Securities and Exchange Commission (SEC), as announced by the company on Thursday.

Valkyrie to Launch Pioneering Ethereum Futures-Linked ETF

The transformed entity, now known as the Valkyrie Bitcoin and Ether Strategy ETF (BTF.O), is set to debut next Monday, according to Steven McClurg, Valkyrie’s Chief Investment Officer.

This marks a significant milestone, as it will be the inaugural instance where futures linked to Ethereum, also known as “ether” contracts, will be accessible to investors through an exchange-traded fund. Such a move is poised to boost the cryptocurrency market substantially.

SEC Shifts Stance on Ether Futures ETFs

Meanwhile, competing asset management firms VanEck and ProShares are actively pursuing the launch of pure ether futures ETFs, a departure from Valkyrie’s hybrid approach. McClurg disclosed that the SEC has conveyed to VanEck and ProShares that they, too, have the green light to commence operations on the forthcoming Monday.

The SEC’s unexpected shift in stance, relinquishing long-held reservations regarding ether futures ETFs, marks a significant victory for the cryptocurrency sector. It reflects the industry’s persistent efforts to expand the array of crypto ETFs they can introduce. It’s worth noting that several companies have submitted applications to launch spot Bitcoin ETFs.

The SEC has not responded to inquiries for comment

On the Flipside

  • Introducing pure ether futures ETFs by VanEck and ProShares could intensify competition in the crypto investment space.
  • The SEC’s approval of these ETFs comes amid ongoing debates about the regulatory framework for cryptocurrencies.
  • Many investors may not fully understand the complexities and risks associated with these products, emphasizing the importance of responsible investing and due diligence.

Why This Matters

The approval of Ethereum futures ETFs, alongside the expansion of cryptocurrency investment options, signifies a pivotal moment for the crypto industry. It paves the way for greater diversification and accessibility in the digital asset market, potentially attracting a broader range of investors and driving further innovation in the crypto space.

To learn more about recent SEC developments related to Bitcoin ETF proposals, read here: 
SEC Plays Hardball with Bitcoin ETF Proposals, Sets New Deadlines

For the latest insights into the urgent calls from U.S. lawmakers urging immediate approval of Bitcoin ETFs, click here: 
U.S. Lawmakers Urge SEC Chair to Approve BTC ETFs “Immediately”

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Kyle Calvert

Kyle Calvert is a cryptocurrency news reporter for DailyCoin, specializing in Ripple, stablecoins, as well as price and market analysis news. Before his current role, Kyle worked as a student researcher in the cryptocurrency industry, gaining an understanding of how digital currencies work, their potential uses, and their impact on the economy and society. He completed his Masters and Honors degrees in Blockchain Technology within Esports and Business and Event management within Esports at Staffordshire University.