TLDR
- Valkyrie Asset Management has decided to postpone any purchases of Ether futures contracts until the SEC approves its proposed Ether-related ETF.
- The SEC has also delayed decisions on multiple other cryptocurrency ETFs, including Valkyrie’s own Bitcoin ETF, contributing to market uncertainty.
- Valkyrie’s sudden reversal comes amidst a backdrop of a looming U.S. government shutdown and SEC’s increased scrutiny over the crypto ETF landscape.
Asset management firm Valkyrie has decided to halt any forward motion on Ether futures contracts. The firm stated it would wait for an official green light from the United States Securities and Exchange Commission (SEC) for its proposed exchange-traded fund (ETF) related to Ether. Significantly, Valkyrie is reversing its original plan, which involved pre-emptive purchases for a combined Bitcoin and Ether Strategy ETF. The new position emerged on September 29, less than 24 hours after announcing plans to move ahead with purchases in the first week of October.
SEC delays stir market uncertainty
Moreover, the SEC has recently delayed decisions on multiple cryptocurrency-related ETFs, including a spot Bitcoin ETF from Valkyrie. Concurrently, other industry players like BlackRock, Invesco, and Bitwise have also had their proposals pushed back. While the market awaits ETF trading of Ether futures from other firms like VanEck, Bitwise, and ProShares, Valkyrie’s decision adds to the landscape’s unpredictable nature.
Valkyrie’s SEC filing stated the fund would “unwind any existing positions in ether futures contracts.” This action has left market analysts and investors puzzled, especially given the quick change in stance. In August, Valkyrie had filed for listing an Ether futures ETF on the Nasdaq Stock Market, but the SEC has yet to reach a decision on this proposed rule change.
However, the SEC’s recent behavior seems influenced by broader governmental issues. The regulator’s postponement came just as Congress is scrambling to pass a bill to avoid a U.S. government shutdown. The deadline is set for September 30, and many believe that the SEC’s delays could be a response to this looming governmental crisis.
Additionally, the SEC has initiated public commentary proceedings regarding the vulnerability and resistance to market manipulation of various spot Bitcoin ETFs. The commission is also exploring the possibility and effectiveness of a surveillance-sharing agreement with cryptocurrency exchange Coinbase, aimed at detecting and preventing fraud. This flurry of activity underscores the volatility and ever-changing regulations in the cryptocurrency industry.
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Source: https://www.cryptopolitan.com/valkyrie-halts-on-ether-futures-contracts-amid-sec-delays-and-etf-uncertainty/