Asset Management Firm Valkyrie Files for ETH Futures ETF

Updated: 17 August 2023

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After moving to change its investment strategy for a Bitcoin Futures ETF, asset management firm Valkyrie has filed an application for ETH futures ETF at the US Securities and Exchange Commission.

Valkyrie just filed for an Ether Futures ETF, which is in addition to their 497 filing to do name/strategy of $BTF to Bitcoin + Ether Futures to get out early. Perhaps this is sign SEC not letting them do the 'ole $MJ maneuver, not sure.. ht @NateGeraci pic.twitter.com/OeyGuyJP3y

— Eric Balchunas (@EricBalchunas) August 16, 2023

According to go the application, the fund is not about directly investing in Ethereum.

“The Fund will not directly invest in Ether,” the document states, adding, “Under normal circumstances, the Fund will seek to purchase several Ether future contracts.”

The document also specified that users getting direct exposure to the ETH price should consider picking investment instruments other than the fund.

ETF Not Limited to Ethereum

The application has clarified that in addition to investment in Ethereum futures, the fund will put the remaining assets into collateral investments, such as “cash, cash-like instruments” or “high-quality securities.”

These will include US government securities, corporate debt securities, and money market funds.

Valkyrie has also stated that the ETF’s investments in Ethereum futures contracts will be limited by the position limits set by the CME applicable to such agreements. The position limit for ETH futures is 8,000 monthly contracts, with each warranty representing 50 ETH.

The asset management firm has also written that if this applicable position limits it from buying additional front-month ETH contracts, it will invest in longer-dated ETH futures contracts or collateral investments.

Valkyrie Latest in the Running for ETH Futures ETF

This application makes Valkyrie sixth on the list of asset management firms trying to get approval for an ETH’s future ETF. Grayscale, Bitwise, Proshares, Round Hill Capital, VanEck, and other companies have filed to offer ETH’s future ETF to US customers.

The new ETF applications result from firms’ positive expectations for spot Bitcoin ETF applications, with many believing that approval is most likely.

In the meantime, the Ethereum price isn’t doing too well. Having suffered a downturn last month, it is trading around the $1.8k mark. Also, Valkyrie’s recent ETH futures ETF filing has not impacted Ethereum.

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