Share:
  • Valkyrie Funds will begin offering exposure to ETH futures through its newly combined Bitcoin and Ether Strategy ETF.
  • The move makes it the first US firm to allow investors to bet on the future price of the Ether through an ETF.
  • Meanwhile, there is speculation that other issuers are ready to launch as DeFi races to hold Ethereum futures.

Valkyries Investments is the pioneer company to offer an Ethereum (ETH) futures first exchange-traded fund (ETF). It beats nine other issuers after securing approval from the US Securities and Exchange Commission (SEC) to allow investors a chance to wager on the future of Ether.

Also Read:  Ethereum Futures ETF to roll out by first week of October: Bloomberg ETF analyst

Valkyrie becomes first ETH futures ETF issuer

Valkyries, famous for its Bitcoin mining ETF and a top performer on metrics of crypto-related ETFs in the US, has won the ETH futures ETF race, becoming the first to issue the product.

The development is a paradigm shift, changing the commonplace destination for US investors to buy ETH, from Coinbase exchange to a more retail avenue through ETFs. Besides Valkyries, several other firms are interested in offering the product, including VanEck, Grayscale Investments, and Bitwise.

Noteworthy, this interest is not limited to the ETH futures ETF, extending to Bitcoin Spot ETF, with BlackRock and Fidelity at the forefront. If the SEC gives green light, investors would be able to access BTC’s spot price as opposed to its future value only purchasable by accredited investors will expansive investable assets.

Nevertheless, the SEC has shown reluctance to approve any of these products, thereby delaying crypto’s entry into mainstream finance, according to SEC Chair Gary Gensler. Specifically, a spot ETF makes it possible for investors to buy the product via brokerages.

From Valkyries Investment to Valkyrie Bitcoin and Ether Strategy ETF

Valkyrie’s intention is to convert its current BTC futures ETF into a combined fund offering BTC and ETH futures, changing the firm’s name to Valkyrie Bitcoin and Ether Strategy ETF. Nevertheless, the Nasdaq ticker BTF will not be changed.

In a statement to FOX Business, Valkyrie's Chief Investment Officer Steven McClurg said:

We are thrilled to be the first to offer ether futures to our investors as interest in the asset has grown exponentially over the past year.

With this, an ETF expert with Bloomberg Intelligence says  “Valkyrie Fund’s ticker is BTF and it will begin holding a small percentage of ETH futures tomorrow (less than 10%). Will switch to 50% ETH and 50% BTC next week. Other ETH futures ETFs will launch next week likely Monday. Unsure of who or how many at this point.”

Initially, the plan was to start trading the fund on October 3, but the firm had to expedite the move in lieu of the possible government shutdown in the US to get ahead of the possibility of the commission scaling back operations.

Crypto ETF FAQs

What is an ETF?

An Exchange-Traded Fund (ETF) is an investment vehicle or an index that tracks the price of an underlying asset. ETFs can not only track a single asset, but a group of assets and sectors. For example, a Bitcoin ETF tracks Bitcoin’s price. ETF is a tool used by investors to gain exposure to a certain asset.

Is Bitcoin futures ETF approved?

Yes. The first Bitcoin futures ETF in the US was approved by the US Securities & Exchange Commission in October 2021. A total of seven Bitcoin futures ETFs have been approved, with more than 20 still waiting for the regulator’s permission. The SEC says that the cryptocurrency industry is new and subject to manipulation, which is why it has been delaying crypto-related futures ETFs for the last few years.

Is Bitcoin spot ETF approved?

Bitcoin spot ETF has been approved outside the US, but the SEC is yet to approve one in the country. After BlackRock filed for a Bitcoin spot ETF on June 15, the interest surrounding crypto ETFs has been renewed. Grayscale – whose application for a Bitcoin spot ETF was initially rejected by the SEC – got a victory in court, forcing the US regulator to review its proposal again. The SEC’s loss in this lawsuit has fueled hopes that a Bitcoin spot ETF might be approved by the end of the year.


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Join Telegram

Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended content


Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended Content

Editors’ Picks

Bitcoin tags $60,000 for the first time in more than two years

Bitcoin tags $60,000 for the first time in more than two years

Bitcoin hit $60,000 after more than two years below this level. BTC liquidations have surpassed $277 million in the last 24 hours. This massive rally in the pioneer cryptocurrency could be attributed to the spot ETF approval.

More Bitcoin News

Arbitrum price resumes rally with Web3 gameathon plan for March

Arbitrum price resumes rally with Web3 gameathon plan for March

Arbitrum, an Ethereum Layer 2 scaling solution, has announced an event for Web3 gaming. The event is likely to attract community members, delegates and Web3 gamers. This could positively influence Arbitrum adoption and is likely to boost ARB gains. 

More Arbitrum News

Ethereum price hits new yearly high at $3,369 as staked Ether rises to 26%

Ethereum price hits new yearly high at $3,369 as staked Ether rises to 26%

Ethereum price has climbed to a new 2024 high of $3,369 on Wednesday. Bitcoin’s rally to $59,000 and the upcoming Dencun upgrade activation on mainnet have likely catalyzed Ethereum’s price gains. 

More Ethereum News

XRP climbs to $0.58 as SEC pushes for deadline extension in Ripple lawsuit

XRP climbs to $0.58 as SEC pushes for deadline extension in Ripple lawsuit

XRP price rallied on Wednesday in response to the Securities and Exchange Commission’s (SEC) push to delay the remedies briefing deadline in its lawsuit against the payment remittance firm. 

More Ripple News

Bitcoin: BTC likely to correct to $50,000 soon

Bitcoin: BTC likely to correct to $50,000 soon

Bitcoin price has formed a potential top signal that forecasts a sell-off. The weekly chart also points to a bearish divergence, which adds credence to the bearish outlook. Investors can expect BTC to consolidate between the $52,062 to $45,160 levels.

Read full analysis

BTC

ETH

XRP