Valkyrie Investments will become the first provider of a US-based ETF that includes ethereum futures, according to FOX Business reports in September 28.
A seperation cheep Eleanor Terret, author of that article, suggests that the fund will make the relevant change on September 29. Valkyrie herself has not confirmed that date.
Unlike other pending ethereum futures ETFs, Valkyrie’s fund will combine bitcoin and ethereum futures. James Seyffert, Bloomberg contributor He noted that The fund will begin holding less than 10% ethereum futures on September 29. The fund will then hold 50% ethereum futures and 50% bitcoin futures in the first week of October.
This change represents a conversion rather than a new release. The corresponding fund, listed as BTF, has been trading since late 2021. It was one of the first bitcoin futures ETFs to gain approval from the US Securities and Exchange Commission (SEC) at the time.
VanEck also plans eth futures ETF
Separately, competing asset management firm VanEck said in an announcement on ethereum-Futures-ETF-EFUT”>September 28 which will soon launch its own ethereum futures ETF.
VanEck described his upcoming fund as an actively managed ETF that invests in ethereum futures contracts. Specifically, the fund invests in standardized, cash-settled ETF futures contracts on commodity exchanges that are registered with the Commodity Futures Trading Commission (CFTC). In VanEck’s case, he plans to invest in ethereum futures on the Chicago Mercantile Exchange (CME).
VanEck’s fund will be listed on the CBOE exchange under the tag EFUT. VanEck’s Head of Active Trading, Greg Krenzer, will actively manage the fund.
Like Valkyrie, VanEck also currently offers a bitcoin Strategy ETF (XBFT). However, it appears that this fund will remain separate from VanEck’s ethereum futures ETF.
Other ethereum-related funds are also pending
Several other ethereum futures funds are also awaiting approval. The list of applicants includes, among others, Bitwise, ProShares and Grayscale, and many of these proposed funds are likely to go live during the first week of October.
Those ethereum futures ETFs are distinct from the ethereum spot ETFs that have been proposed by many of the same companies. Funds in the latter category involve direct investments in ethereum and, as such, are less likely to gain regulatory approval.
The SEC postponed its decision on two spot ethereum ETF proposals from VanEck and Ark 21Shares on September 27. This will delay the regulator’s decisions until December.
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