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Wednesday, April 17, 2024
HomeFinance NewsValkyrie Delays Ether Futures Contract Purchases Until ETF Launch

Valkyrie Delays Ether Futures Contract Purchases Until ETF Launch

Asset management firm Valkyrie has announced that it will wait for the approval of the United States Securities and Exchange Commission (SEC) before purchasing an exchange-traded fund (ETF) with exposure to Ether (ETH) futures. In a recent filing with the SEC, Valkyrie stated that it would not make certain purchases until an amendment reflecting ETH futures contracts as the ETF’s principal investment strategy is effective. Previously, Valkyrie had planned to offer investors exposure to Ether and Bitcoin (BTC) through a combined Bitcoin and Ether Strategy ETF, with purchases scheduled to be made before a launch in early October. However, the firm now plans to unwind any existing positions in ether futures contracts, according to the SEC filing.

The reasons behind Valkyrie’s change in stance within a short period remain unclear, as the firm did not respond to Cointelegraph’s request for comment. Valkyrie had filed with the SEC in August to list an Ether futures ETF on the Nasdaq Stock Market, but a decision on the proposed rule change for the investment vehicle has not been made by the regulator. Several ETFs that provide exposure to Ether futures are expected to commence trading in the first week of October, including offerings from VanEck, Bitwise, and ProShares. However, the SEC recently postponed its decision on Valkyrie’s proposal for a spot BTC ETF, as well as proposals from BlackRock, Invesco, and Bitwise.

The delays by the SEC came ahead of the scheduled ETF deadlines and raised speculations that the regulator may be responding to a potential government shutdown in the US. Congress members have until September 30 to present a bill that funds the government into the next fiscal year, awaiting President Joe Biden’s signature.

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