Thursday, November 21, 2024

Valkyrie Files with SEC to Launch a New Ethereum ETF

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Stanislav Shishkin
Stanislav Shishkinhttps://cryptoapa.com/
Stanislav is one of the lead copywriters on cryptoapa.com and discusses all recent events in the crypto market. This includes news updates, but also price analyzes and more. He developed his passion for cryptocurrency during the bull run in 2017. He has learned a lot since then. The combination of cryptocurrency and creative writing is perfect for Jeroen and an excellent way to share his knowledge with a wide audience. Stanislav at cryptoapa.com

Asset management company Valkyrie Funds has filed paperwork with the Securities and Exchange Commission (SEC) seeking approval for a new exchange-traded fund (ETF) focused on Ethereum futures.

The proposed Valkyrie Ethereum Strategy ETF would invest primarily in Ether futures contracts instead of directly in Ethereum’s native cryptocurrency, Ether. According to the filing, the fund aims to provide investors exposure to Ethereum’s growth while also investing in stable securities like Treasury bonds.

Valkyrie warned that the volatile nature of Ether makes the fund’s investments highly risky. This Ethereum futures ETF filing comes as Valkyrie already offers Bitcoin futures and mining ETFs.

Meanwhile, Europe saw the launch of its first spot Bitcoin ETF this week by London’s Jacobi Asset Management, which trades on the Euronext Amsterdam exchange. This milestone comes after a year delay and has opened the floodgates for more spot Bitcoin ETF applications in the US.

Major firms like BlackRock, Invesco, and Wisdom Tree have all filed for spot Bitcoin ETFs following Jacobi’s approval. However, the SEC has consistently rejected Bitcoin spot ETF proposals, citing concerns around volatility and manipulation. For now, the SEC has only approved Bitcoin futures ETFs, leading to growth in less efficient over-the-counter products like Grayscale’s Bitcoin Trust.

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