Valkyrie Investments has secured a major first in the cryptocurrency industry, obtaining approval from the Securities and Exchange Commission (SEC) for an exchange-traded fund (ETF) featuring Ethereum (ETH) futures.
The fund will allow investors to gain exposure to the world’s second-largest cryptocurrency through futures tracking its price movements. Valkyrie’s ETF has leapfrogged eight other issuers also seeking to launch similar products.
Ether, Ethereum’s native token, is currently valued at around $1,659 per coin. By introducing an Ether futures ETF, Valkyrie aims to make it easier for mainstream investors to participate in the burgeoning crypto market.
The asset manager plans to merge its existing Bitcoin futures ETF with the new fund, creating a combined “Valkyrie Bitcoin and Ether Strategy ETF” that will trade under the ticker BTF on the Nasdaq.
This ETF approval comes as Ethereum garners growing interest, with Ether prices up 3.7% over the past 24 hours. Valkyrie has expedited its fund launch to avoid potential disruptions from an impending government shutdown.
The SEC previously rejected spot Ethereum ETFs but appears more open to futures-based products. Rival issuers anxiously await decisions on their own filings before a Friday deadline.
Valkyrie’s chief investment officer hailed the approval, citing surging demand for regulated Ethereum investment vehicles. This first-mover advantage in Ether futures reflects the asset’s maturity and could draw billions in inflows.
While just a baby step for crypto ETF access, Valkyrie’s product opens the doors for wider institutional involvement in Ethereum’s flourishing ecosystem.
