Valkyrie files for ether futures ETF

Valkyrie filed for an ether futures ETF on Wednesday, titled the Valkyrie Ethereum Strategy ETF.

Valkyrie joins Volatility Shares, Bitwise Asset Management and Grayscale — to name a few — in announcing funds focused on ether futures.

An Aug. 16 filing with the US Securities and Exchange Commission shows that Valkyrie will invest indirectly in “standardized, cash-settled futures contracts on ether,” which are currently traded on the Chicago Mercantile Exchange.

As Blockworks previously reported, Valkyrie filed a 497 filing to change the name of its Valkyrie Bitcoin Strategy ETF (BFT) to Valkyrie Bitcoin and Ether Strategy ETF. It would, however, keep the Nasdaq ticker.

The fund will also “change to pursue its investment objective through managed exposure to a combination of bitcoin futures contracts and ether futures contracts.”

The newest filing for the fund would be in addition to the 497.

Volatility Shares announced on Tuesday that it was aiming for an Oct. 12 launch for its Ether Strategy ETF, though it awaits SEC approval. 

Earlier this month, Bloomberg Intelligence analyst Eric Balchunas compared Valkyrie’s attempt to change the name and broaden its investment objective to the first pot ETF, MJ.

“Valkyrie just filed a 497 that they plan to convert $BTF into a Bitcoin + Ether ETF on Oct 3rd, which would be two [weeks] ahead of the other 13 filers scheduled launch. We’ll see if this flies. Something similar happened back in [the] day with $MJ, the first pot ETF,” he tweeted.

With the newest filing, however, Balchunas noted that this might be a sign of the SEC’s reluctance to skip the line and get a fund out ahead of competitors.

Blockworks has previously reported that bids to launch ETFs focused on ether futures contracts have not been successful, with both VanEck and ProShares pulling their fund applications in 2021.

However, the SEC has since indicated a willingness to consider ether futures ETFs, according to reporting from Blockworks.

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