ETF ETF: Valkyrie stops buying ETH futures cryptoforbs

Asset management firm Valkyrie, one of the leaders in creating the first Ethereum ETF (exchange-traded fund) in the United States, has decided to halt its purchases of Ether futures until the US Securities and Exchange Commission approves an Ethereum futures ETF. This comes barely a day after the asset manager He reportedly received approval for the investors’ pitch to ether futures under its current ETF (BTF) strategy.

The Securities and Exchange Commission may be behind the action, a Bloomberg expert speculates

Friday, September 29 Valkyrie Provided 497 With the Securities and Exchange Commission, saying it would stop buying Ethereum futures and unload its existing positions.

Part of the file reads:

Effective immediately, the Fund will not purchase Ether futures contracts until the Fund’s registration statement amendment contemplates adding Ether futures contracts to the Fund’s principal investment strategy. Until that time, the Fund will liquidate any existing positions in Ether futures contracts.

like mentioned On Thursday, September 28, the SEC appears to be accelerating approval of Ethereum futures ETFs in anticipation of a potential US government shutdown next week.

After this report Valkyrie a statement It has begun purchasing Ether futures for its combined ETF strategy ahead of a potential launch next week.

However, this latest action raises questions about Valkyrie’s prospects of becoming one of the first companies to offer an ETF in the United States.

Bloomberg analyst Eric Balchunas offered a possible reason for Valkyrie’s decision to halt and unwind its purchases of Ethereum futures. “The SEC must have threatened to cut it off,” Balchunas speculated in a post on X (formerly Twitter).

The plot is thickening, as Valkyrie has just announced 497 that they will in fact not be buying Ether futures until it goes live (most likely Tuesday) and will be selling the Eth futures they bought (trying to jump the line a bit). The SEC must have threatened to cut them off. the curse. https://t.co/yDkggCw3d1 pic.twitter.com/cKaV7k7AJs

– Eric Balchunas (@EricBalchunas) September 29, 2023

Valkyrie submitted her unique application for the ETF With the Securities and Exchange Commission in August. The asset manager is seeking to convert its existing Bitcoin Strategy ETF (BTF) into a mutual fund for bitcoin and ether futures.

Will nine Ethereum ETFs be launched next week?

according to Analysis by Eric BalchunasAbout nine Ethereum ETFs will likely begin trading on Monday, October 2. It is worth noting that asset manager ProShares owns three of these funds, with two ETFs in Bitcoin and Ethereum.

VanEck is the front-runner for the first Ethereum futures ETF in the US. The investment manager recently announced its intention to donate 10% of the profits of the Ethereum ETF (EFUT) to The Protocol Guild, a compensation plan for core Ethereum shareholders.

Van Eyck Written on X (formerly Twitter):

If TradFi is going to benefit from the efforts of Ethereum core contributors, it makes sense to give back to their work as well. We encourage other asset managers/ETF issuers to also consider giving back in the same way.

Big announcement!

We intend to donate 10% of our funds $EFUT Profits of ETFs (https://t.co/gr652AkUvv) l @Guild Protocol For at least 10 years.

Thank you, Ethereum contributors, for nearly a decade of continuous building and stewardship of this shared infrastructure.

Details

– Van Eck (@vaneck_us) September 29, 2023

It is worth noting that the price of ETH has seen some relief since news of the possible launch of an Ethereum ETF started spreading. As of this writing, Ethereum is worth $1,676, reflecting a significant 5% jump in price in the past week.

Ethereum price continues recovery on the daily timeframe | Source: ETHUSDT chart on TradingView