- Valkyrie sought SEC approval for an Ether futures ETF, aiming to broaden its investment options.
- The asset management firm joins prominent players such as Grayscale, VanEck, and ProShares in pursuing Ether futures ETFs.
Asset manager Valkyrie has submitted filing with the US Securities and Exchange Commission (SEC) for an Ethereum [ETH] futures exchange traded fund (ETF). The filing, filed on August 16, indicates that Valkyrie intends to expand its investment offerings beyond Bitcoin [BTC] futures ETF.
In the proposal, the ETF will not invest directly in ETH itself. Instead, it wants to buy a series of ETH futures contracts. Within the decentralized ecosystem, users are widely leveraging ETH, Ethereum’s native cryptocurrency, to conduct peer-to-peer transactions.
The paper submitted notes that the classification of Ether can vary and may be considered a currency or digital commodity depending on its use in specific transactions.
While some retailers, both large and small, accept ETH as payment, its use for commercial and retail transactions remains relatively limited. Ether also shows characteristics of a store of value, but is characterized by significant price volatility.
Wealth management firm aims to expand offerings beyond ETF
Valkyrie’s filing outlines a specific limit on the ETF’s investment in Ether futures contracts, capped at 8,000 contracts per month to meet position limits set by the Chicago Mercantile Exchange. If the SEC approves the application, investors will have the opportunity to speculate on Ether’s future prices through the ETF.
Aside from Ether futures, the ETF plans to invest its remaining assets in cash, cash instruments or high-quality securities. These include U.S. government-issued bills, notes, bonds, money market funds, and corporate debt securities.
Notably, Valkyrie is one of several major asset management players seeking approval for an Ether futures ETF for US investors. The others include Grayscale, VanEck, Bitwise, Volatility Stocks, ProSharesAnd Round Hill capital.
The influx of these applications reflects the widespread expectation that US regulators could soon give the green light to a Bitcoin ETF. Multiple investment giants including Black rock and Fidelity, also await regulatory approval for their ETF offerings.