Valkyrie Investments has filed for an Ethereum futures exchange-traded fund (ETF), as revealed in a filing from the U.S. Securities and Exchange Commission (SEC) on Aug. 16.
According to that filing, nearly all of the fund’s assets will be invested in exchange-traded Ethereum futures, while a small portion will be invested in collateral investments such as cash, cash instruments or high-quality securities. The text of the filing emphasizes that the fund’s assets will not be invested in Ethereum (ETH) itself.
Valkyrie’s filing indicates that the fund’s investment capacity may be limited by Chicago Mercantile Exchange (CME) regulations. Those limits currently limit ETH futures positions to 8,000 contracts per month. Each contract represents 50 ETH (currently $91,100). Valkyrie said the fund may invest in longer term futures contracts and additional collateral investments if it reaches these limits.
Valkyrie previously attempted to combine its Bitcoin futures ETF (dubbed the “Bitcoin Strategy ETF”) with Ethereum futures in an Aug. 4 filing. On that filing, Valkyrie would integrate both investments and rename the fund accordingly starting Oct. 3, if approved.
The status of that submission and its connection to the recent submission are not clarified in the document.
Interest in crypto ETFs is high
Ethereum futures ETFs attracted a lot of interest from asset managers this summer. Volatility Shares, Bitwise, ProShares, VanEck, Roundhill, and Grayscale have all signed up in recent weeks to offer an Ethereum futures ETF.
That interest is coupled with a broader interest in cryptocurrency ETFs, as Valkyrie and many other companies are also pursuing a spot Bitcoin ETF. Valkyrie filed its filing with the SEC on June 21 after asset management giant BlackRock did the same just days earlier. As of the current date, no US company has been allowed to offer a spot Bitcoin ETF, allegedly due to inadequate oversight sharing agreements
Valkyrie was also one of the first companies to offer a Bitcoin futures ETF in October 2021. It also offers several other crypto-related investments.
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