Home Finance News Valkyrie Delays Ether Futures Contract Purchases Until ETF Launch

Valkyrie Delays Ether Futures Contract Purchases Until ETF Launch

Valkyrie Delays Ether Futures Contract Purchases Until ETF Launch

Asset management firm Valkyrie plans to wait for the approval of the United States Securities and Exchange Commission (SEC) before purchasing Ether (ETH) futures for its proposed exchange-traded fund (ETF). 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 primary investment strategy becomes effective. Previously, the firm had announced its intention to offer investors exposure to both Ether and Bitcoin (BTC) through a combined Bitcoin and Ether Strategy ETF. However, the SEC filing reveals that the fund will unwind any existing positions in ether futures contracts.

Valkyrie’s sudden change in strategy within a day has raised questions, and the reasons behind it remain unknown as the firm has not responded to inquiries at the time of publication. Valkyrie filed to list an Ether futures ETF on the Nasdaq Stock Market back in August, but the SEC has yet to make a decision on the proposed rule change. While Valkyrie faces delays in its ETF plans, other firms such as VanEck, Bitwise, and ProShares are expected to begin trading ETFs offering exposure to Ether futures in early October. Additionally, the SEC also delayed its decision on a spot BTC ETF proposal from Valkyrie and others, causing speculation that the delays might be linked to a potential U.S. government shutdown.

As the SEC’s ETF deadlines approach, the regulator’s actions have been closely watched. The delays in ETF approvals are seen by some as a response to the pending government shutdown. Members of Congress have until the end of September to pass a bill that funds the government into the next fiscal year, and the SEC’s actions may be influenced by the uncertainty surrounding this issue.

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