NEW YORK, September 29 — Valkyrie Funds, one of the companies seeking to launch Ethereum ETF in the United States, said it has halted its purchase of ETH futures contracts. 1
The company shared its decision on Friday, September 29, 2023, through a filing with the Securities and Exchange Commission. However, the filing did not offer any explanation for the decision.
The filing states that Valkyrie Funds is seeking to amend the registration statement for its Valkyrie Bitcoin Strategy ETF to add ether futures contracts to the fund’s principal investment strategy. The filing also states that Valkyrie will not purchase ether futures contracts until the amendment to the registration statement has become effective. Until then, Valkyrie will unwind any existing positions in ether futures contracts. The original filing can be found here 2.
Valkyrie is not the only company that has halted its purchase of ETH futures contracts in recent weeks. VanEck Associates and ProShares, two other companies that have filed to launch Ethereum ETFs, have also taken similar steps.
The SEC has yet to approve any Ethereum ETFs, but it is widely expected to do so in the near future. The agency is currently considering several proposals for Ethereum ETFs.
An exchange-traded fund (ETF) functions as an investment fund that is traded on an exchange, similar to the way stocks are traded. ETFs provide a versatile investment option, allowing individuals to invest in various assets such as stocks, bonds, and commodities.
An Ethereum ETF would allow investors to gain exposure to Ethereum without having to purchase the cryptocurrency directly. This would make it easier for investors to invest in Ethereum and would also help to legitimize the cryptocurrency as an investment asset.
The SEC has not yet approved any such ETFs because the SEC has concerns about the volatility of Ethereum and the lack of regulation in the cryptocurrency market.
- finance.yahoo: https://finance.yahoo.com/news/1-valkyrie-funds-halts-ethereum-172229305.html[↩]
- sec.gov: sec.gov/Archives/edgar/data/1877493/000138713123009893/valkyrie-485apos_081523.htm[↩]
