There is speculation among analysts regarding potential announcements or delays by the SEC concerning cryptocurrency exchange-traded funds before September 30th, in light of the looming possibility of a U.S. government shutdown.
Valkyrie, an asset management firm, is set to introduce United States investors to Ether futures exposure through its existing Bitcoin Strategy exchange-traded fund (ETF).
A spokesperson from Valkyrie, in a statement to Cointelegraph on September 28th, revealed that the firm’s Bitcoin Strategy ETF will grant investors access to both Ether and Bitcoin futures, all encapsulated within a single investment vehicle. This move positions Valkyrie among the pioneering firms in this endeavor, amidst a backdrop of multiple pending applications with the U.S. Securities and Exchange Commission. Effective October 3rd, the fund will undergo a name change to become the Valkyrie Bitcoin and Ether Strategy ETF.
At the time of this publication, the SEC had not yet released a proposed rule change permitting the listing of a new Ether futures ETF on the Nasdaq Stock Exchange. However, the commission did issue an order pertaining to “additional analysis” regarding the listing of the Valkyrie Bitcoin Fund, which is a spot BTC ETF.
Valkyrie submitted an application to the SEC on August 16th for a fund that doesn’t offer direct investment in Ether but instead involves ETH futures contracts. Additionally, the firm offers a Bitcoin Miners ETF, which tracks the securities of companies deriving their revenue or profits from cryptocurrency mining. Valkyrie was also among the early adopters in the United States, launching an ETF tied to BTC futures in 2021.
James Seyffart, an analyst at Bloomberg Intelligence, has posited that Ether futures ETFs could potentially commence trading in the first week of October. This speculation is partly influenced by the looming prospect of a U.S. government shutdown. If members of Congress are unable to vote on a bill that finances the government for the next fiscal year, allowing sufficient time for U.S. President Joe Biden to sign it into law by September 30th, the SEC, alongside many other federal agencies, will face staffing reductions.
Up to this point, the SEC has not granted approval for any spot cryptocurrency ETFs to trade within the United States. However, numerous experts have suggested that this stance may change following Grayscale Investments’ success in court regarding its spot BTC ETF. Valkyrie, along with several other firms, including BlackRock, has applications pending for spot cryptocurrency ETFs.
