The Securities and Exchange Commission (SEC) has approved crypto-focused investment firm Valkyrie’s request to modify its Bitcoin Strategy ETF to include investments in ether futures. This move signifies the SEC’s willingness to consider ether futures funds, while the fate of spot bitcoin ETFs remains uncertain. The Valkyrie Bitcoin Strategy ETF will officially change its investment strategy on October 3 and be renamed the Valkyrie Bitcoin and Ether Strategy ETF (BTF). Other issuers, such as Grayscale Investments and VanEck, have also filed proposals for ether futures ETFs, indicating that more of these funds are expected to launch soon.
Valkyrie’s approach of amending the investment strategy of an existing fund allowed it to secure an earlier effective date compared to other proposed issuers. Industry experts anticipate the launch of additional ether futures ETFs in the near future. VanEck has released a video teasing the forthcoming launch of the VanEck Ethereum Strategy ETF, while Volatility Shares plans to launch its Ether Strategy ETF on October 12. Speculation suggests that the SEC may accelerate the launch of ether futures ETFs before a potential government shutdown, which could result in a reduced staff at the commission.
The SEC’s approval of Valkyrie’s modification request comes almost two years after the introduction of the first bitcoin futures ETFs in the US. ProShares, Valkyrie, and VanEck all introduced their bitcoin futures products around the same time, with ProShares enjoying a first-mover advantage that helped it accumulate $1 billion in assets under management. Earlier this year, several issuers, including Grayscale Investments, expressed interest in launching ether futures ETFs but halted their plans after indications from the SEC that approval was not imminent.