Valkyrie Investments has filed for an Ethereum futures exchange-traded fund (ETF), as seen in a U.S. Securities and Alternate Fee (SEC) submitting on Aug. 16.
In keeping with that submitting, almost the entire fund’s property will likely be invested in exchange-traded Ethereum futures, whereas a small portion will likely be invested in collateral investments resembling money, cash-like devices, or high-quality securities. The textual content of the submitting emphasizes that the fund’s property is not going to be invested in Ethereum (ETH) itself.
Valkyrie’s submitting signifies that the fund’s funding capability could also be restricted by rules set by the Chicago Mercantile Alternate (CME). These limits at the moment prohibit ETH futures positions to eight,000 contracts monthly. Every contract represents 50 ETH (at the moment $91,100). Valkyrie stated the fund might put money into longer-dated futures contracts and extra collateral investments if it reaches these limits.
Valkyrie beforehand tried to mix its Bitcoin futures ETF (referred to as the “Bitcoin Technique ETF”) with Ethereum futures in an Aug. 4 submitting. That submitting would see Valkyrie combine each investments and rename the fund accordingly beginning on Oct. 3 if accredited.
The standing of that submitting, and its connection to the latest submitting, haven’t been clarified within the doc.
Curiosity in crypto ETFs is excessive
Ethereum futures ETFs attracted widespread curiosity from asset managers this summer time. Volatility Shares, Bitwise, ProShares, VanEck, Roundhill, and Grayscale have all utilized to supply an Ethereum futures ETF in latest weeks.
That curiosity comes alongside broader curiosity in cryptocurrency ETFs, as Valkyrie and lots of different firms are additionally pursuing a spot Bitcoin ETF. Valkyrie submitted its utility to the SEC on June 21 after the asset administration big BlackRock did the identical simply days earlier. As of the present date, no U.S. firm has been granted permission to supply a spot Bitcoin ETF, reportedly as a result of insufficient surveillance-sharing agreements
Valkyrie was additionally one of many first firms to supply a Bitcoin futures ETF in October 2021. It provides varied different crypto-related investments as nicely.
The publish Valkyrie information for Ethereum futures ETF appeared first on CryptoSlate.