SEC Approves Major ETF: Valkyrie’s Futures Offering Explained

• 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

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.