- The firm has received approval to add Ether futures exposure to its BTF.
- ProShares, Bitwise, and VanEck plan to launch Ether futures ETFs.
In a filing submitted to the SEC, asset management firm Valkyrie has decided to halt its plans to purchase Ether (ETH) futures. This comes as the company awaits approval from the SEC and includes unwinding any existing positions in Ether futures contracts.
However, what prompted Valkyrie to reverse its position in less than 24 hours remains unclear. The asset management firm had previously filed with the SEC to list an Ether futures ETF on the Nasdaq Stock Market in August. However, the regulatory body has not decided on the proposed rule change to allow such an investment asset.
Valkyrie revealed its intention in an SEC Form 497 filing, asserting that it would unwind any Ether futures contracts it had previously acquired, further emphasizing its commitment to regulatory compliance. This decision was evident in the filing with the regulator on September 29.
“The fund will not purchase Ether futures contracts until the effectiveness of an amendment to the fund’s registration statement contemplating the addition of Ether futures contracts to the principal investment strategy of the fund,” the filing stated. “Until such time, the fund will unwind any existing positions in Ether futures contracts.”
This unexpected change comes after Valkyrie had confidently stated that it had received approval from the SEC to add Ether futures exposure to its Bitcoin Strategy ETF (BTF).
Valkyrie Faces Regulatory Challenges
Despite Valkyrie’s decision to step back, the crypto ETF space is gearing up for significant activity. Several ETFs offering exposure to Ether futures are expected to commence trading in the first week of October. Asset management firms such as VanEck, Bitwise, and ProShares are among those preparing for their launch of the ETFs.
In a separate development, the SEC recently delayed its decision on proposals for a spot Bitcoin (BTC) ETF, including those from Valkyrie, BlackRock, Invesco, and Bitwise. This delay came ahead of scheduled ETF deadlines for the SEC, prompting speculations that it could be related to concerns over a potential government shutdown.
