Valkyrie, a company that manages assets, has recently submitted an application for a futures ETF focused on Ethereum (ETH).
This ETF, called Valkyrie Ethereum Strategy ETF, aims to track the performance of Ethereum, which is the second-largest cryptocurrency in the world.
While there is limited information available about the fund’s specifics, Valkyrie Digital Assets specializes in crypto-related products and services.
Valkyrie has experience in the crypto ETF field. They have previously sought approval for various Bitcoin-related ETFs, such as a physically backed Bitcoin ETF, a Bitcoin futures ETF, and a Bitcoin balance sheet ETF. The Securities and Exchange Commission (SEC) has approved the last two, and they are currently available for trading on the Nasdaq exchange with the abbreviations BTF and BSTR.
Valkyrie is among a small number of companies that have applied for crypto ETFs in the United States. This move aligns with the preferences of SEC Chairman Gary Gensler, who favors ETFs based on crypto futures rather than spot prices. Other firms, such as ProShares, Invesco, VanEck, and Bitwise, have also expressed interest in launching crypto ETFs.
The introduction of crypto ETFs in the US is considered a significant achievement for the industry, as it allows both individual and institutional investors to have easier and more legitimate access to crypto assets.
Nevertheless, there are critics who believe that futures-based ETFs are less efficient and more expensive compared to spot-based ETFs. They argue that futures-based ETFs do not accurately represent the real demand and supply of crypto assets.
The Securities and Exchange Commission (SEC) has not yet approved any spot-based crypto ETFs in the US. The SEC has expressed concerns regarding market manipulation, custody, valuation, liquidity, and protection for investors.