Prominent AUM Valkyrie won the race to offer the first exchange-traded fund [ETF] featuring Ethereum futures. As confirmed by insider sources at FOX Business, the approval granted by the SEC allows investors the opportunity to speculate on the future price movements of ETH through an ETF, revolutionizing the way investors engage with cryptocurrencies. This is a groundbreaking move that signifies a significant step towards the mainstream acceptance of digital assets in the United States.
Valkyrie, a fintech powerhouse has taken a giant leap in the race for ETF dominance. Earlier, the asset manager submitted a Form 497 outlining its ambitious plan to convert its existing fund, BTF, into a formidable dual Bitcoin and Ether Exchange-Traded Fund ahead of its scheduled launch date.
However, Valkyrie is not alone in this endeavor. Eight other issuers, including VanEck, Grayscale Investments, and Bitwise, have filed applications to launch their own Ethereum ETF products. As reported by TronWeekly, Bitwise Invest has positioned itself for a strategic transition, drawing inspiration from Valkyrie Funds’ recent moves.
The company has also submitted a revised prospectus detailing its intentions to convert its well-known Bitcoin futures ETF [BITC)] into the innovative “Bitwise Bitcoin and Ethereum Equal Weight Strategy ETF,” heralding a new phase in its strategy.
Despite these advancements, the path to full integration of cryptocurrencies into mainstream financial systems faces challenges. SEC Chairman Gary Gensler has been cautious about embracing spot ETFs, a move that would bring cryptocurrencies further into the financial mainstream, a stance reflecting the ongoing debate within regulatory circles about the potential risks and benefits associated with digital assets.
Also read: SEC Greenlights Franklin Templeton’s Spot ETF Amidst Congressional Pressure
SEC Fast-Track Valkyrie ETF Owing To Impending Gov. Shutdown
While there’s still a cloud of uncertainty hanging over spot ETFs, the looming possibility of a government shutdown has prompted the SEC to expedite the launch of the Ethereum futures ETF with Valkyrie paving the way. The crypto market now stands on the brink of a new era, one where digital assets are not just a niche investment but a pivotal component of mainstream financial portfolios, reflecting the evolving landscape of global finance.
After the announcement, which undeniably enhanced visibility and propelled the price of ETH to $1,665 by the close of Thursday’s trading session. The next in line as per Eric Balchunas, a seasoned ETF analyst with Bloomberg, would likely be a series of Ethereum-dedicated ETFs. The goal? Clear the decks before the shutdown.