Valkyrie Greenlit to Purchase ETH Futures for its Bitcoin, Ethereum ETFs

Valkyrie Investments, known for its Bitcoin Mining ETFs, will begin investing in Ether Future ETFs, making it the first to offer exposure to Ether and Bitcoin futures contracts within a single entity.

The asset management firm plans to purchase Ethereum Futures on Oct. 3, expanding its offerings range.

Valkyrie Expands Offerings with Ethereum Futures

Valkyrie is set to begin investing in Ethereum futures contracts. This move comes after the SEC approved the firm to modify its existing bitcoin futures exchange-traded fund (ETF) into a dual-investment. Following this, the Valkyrie Bitcoin Strategy ETF has become the first U.S. ETF to offer exposure to both Ether and Bitcoin futures contracts within a single entity.

🚨SCOOP: Tomorrow @ValkyrieFunds will begin offering exposure to #ETH futures through its newly combined Bitcoin and Ether Strategy ETF, making it the first U.S. firm to allow investors to bet on the future price of the second largest digital asset.

We’ll have Valkyrie CIO…

— Eleanor Terrett (@EleanorTerrett) September 28, 2023

Commenting on this development, Steven McClurg, Chief Investment Officer of Valkyrie, stated, “We are excited to be the first to offer Ethereum futures to our investors, as interest in this asset has experienced tremendous growth over the past year.”

Valkyrie’s strategy involves merging its existing Bitcoin futures ETF into a comprehensive fund encompassing Bitcoin and Ethereum futures. The fund will be rebranded to the “Valkyrie Bitcoin and Ether Strategy ETF” while retaining its Nasdaq ticker symbol, BTF. It intends to start the purchase of Ethereum futures on Oct. 3, with the name change scheduled for Tuesday.

Valkyrie’s introduction of Ethereum futures ETFs is expected to drive increased participation in cryptocurrency trading among retail investors. These ETFs can be traded on major exchanges such as Nasdaq and the New York Stock Exchange, providing a convenient and accessible avenue for individuals to engage in this market.

Accelerated Launch Due to Gvmt Shutdown Concerns

Initially scheduled for an Oct. 3 launch, Valkyrie expedited the launch of its Ethereum futures ETF due to concerns about a potential government shutdown on Friday.

Given the possible reduction in SEC operations during such an event, Valkyrie concluded that acceleration was necessary. If a funding resolution is not reached, the federal government is expected to stop most operations on Saturday, resulting in the layoff of nearly two million federal workers.

Since October 2021, the SEC has permitted trading Bitcoin ETFs linked to futures contracts. However, there have been limited offerings for Ethereum derivatives. Alongside Valkyrie, eight other issuers, including VanEck, Grayscale Investments, and Bitwise, have submitted applications to launch ETFs based on Ethereum.