The U.S. Securities and Exchange Commission (SEC) has given green light to investment manager Valkyrie Funds LLC to its Ethereum Futures ETF. According to Valkyrie, the firm has already started adding ETH futures to its existing Bitcoin Futures ETF.
Chief Investment Officer for Valkyrie, Steven McClurg, told Reuters that the ETF will launch on Monday. Valkyrie has renamed the ETF into Bitcoin and Ether Strategy ETF (BTF.O).
Bloomberg Intelligence analyst James Seyffart, mentioned that it is likely that a few more Ether ETFs will be approved ahead of the looming government shutdown.
Futures vs Spot ETF
A futures ETF differs from a spot ETF in that it tracks the performance of futures contracts on an underlying asset, allowing investors to speculate on future price fluctuations without holding the commodity.
A spot ETF, on the other hand, directly owns and mimics the performance of the underlying assets, such as equities, bonds, or commodities, making it appropriate for investors wanting direct ownership and exposure to such assets.
In addition to Ethereum Futures ETFs, several companies have applied for a Bitcoin Spot ETF, which the SEC has again delayed. U.S. lawmakers have called upon the United States Securities and Exchange Commission (SEC) to approve these applications.
First ETH Futures ETF
The Futures ETF is a first for Ethereum, with some Bitcoin Future ETFs already approved. Eight more applicants are awaiting the outcome of 15 Ether Future ETF applications. VanEck is apparently close to the finishing line and said in a statement that its fund was coming soon.
VanEck disclosed that its Ethereum ETF would be called VanEck Ethereum Strategy ETF (EFUT). According to the press release, “The Fund will invest in standardized, cash-settled ETH futures contracts traded on commodity exchanges registered with the Commodity Futures Trading Commission (CFTC).”
The market appeared to respond positively to the update, with ETH trending up shortly after. At the time of writing, ETH was up 3.36% on the news according to CoinMarketCap. Currently one ETH is trading for US $1,654 ($2,575).
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