Valkyrie Ether Futures Now Suspended Until SEC Approval

Key Points:

• Valkyrie Ether futures will be suspended for all purchases until SEC approval.
• The company’s decision to suspend Ethereum futures purchases aligns with its commitment to regulatory compliance.

On September 29, the asset management company made an official announcement regarding the suspension of Valkyrie Ether futures purchases.

Valkyrie Ether Futures Purchases Suspended Pending SEC Approval

This suspension will remain in effect until they receive approval from the U.S. Securities and Exchange Commission (SEC). In addition to the suspension, the company will also be withdrawing all previously purchased Valkyrie Ether futures.

The decision to halt Ethereum futures purchases is directly tied to the approval status of an amendment to the fund’s registration statement. Valkyrie’s Bitcoin Strategy ETF (BTF) has opted to refrain from acquiring Ether (ETH) futures contracts until the SEC’s approval for adding these contracts to the fund’s principal investment strategy becomes effective.

Earlier, the SEC had granted Valkyrie approval to transform its existing Bitcoin futures ETF into a Bitcoin and Ethereum futures ETF. Consequently, this new fund will undergo a name change to “Valkyrie Bitcoin and Ethereum Strategy ETF,” and it is scheduled to take effect on October 3rd, maintaining the code BTF.

Valkyrie’s ETF Transformation and Ether Futures Strategy

In light of these developments, Valkyrie has committed to unwinding any Ethereum futures purchases that were previously initiated. This swift change in strategy follows the firm’s recent announcement that it had commenced the inclusion of Ether futures exposure within the BTF, following SEC approval.

Valkyrie’s initial move to alter its Bitcoin futures ETF’s investment strategy came in August, when they filed with the U.S. Securities and Exchange Commission. This filing aimed to enable the fund to invest in ether futures, marking a significant shift in their investment approach.

The suspension of Valkyrie Ethereum futures purchases underscores the company’s commitment to regulatory compliance and the evolving landscape of cryptocurrency investments.

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