Valkyrie’s Bitcoin Strategy ETF (Nasdaq: $BTF) is the first US ETF to provide exposure to both Ether and Bitcoin futures contracts.
In a significant development in the crypto ETF world, asset manager Valkyrie has secured approval to add Ether futures contracts to its existing Bitcoin futures exchange traded fund (ETF).
From October 3rd, the Valkyrie Bitcoin Strategy ETF (Nasdaq: $BTF) will offer investors exposure to both Ether and Bitcoin futures contracts under one wrapper for the first time in the US.
Futures contracts, unlike spot ETFs, enable investors to speculate on the future price of Ethereum and Bitcoin without actually owning the cryptocurrency itself. Spot ETFs on the other hand – such as the ones filed by Blackrock, Invesco, ARK Invest and more – propose to directly hold crypto, which is why the regulatory process is more fraught.
“Today, the Valkyrie Bitcoin Strategy ETF (Nasdaq: $BTF) began adding exposure to Ether futures contracts, making it the first US ETF to provide exposure to Ether and Bitcoin futures contracts under one wrapper,” a spokesperson told CoinDesk.
Eric Balchunas, a senior ETF analyst at Bloomberg, anticipates Valkyrie will change the name of the fund on Tuesday.
Balchunas claimed yesterday that US Securities and Exchange Commission (SEC) wants to accelerate the launch of Ether futures ETFs to resolve the matter before a potential government shutdown.
To expedite the applications, the SEC allegedly requested that the applicants update their documentation by Friday evening – a considerable task given the 48-hour timeframe – in order to facilitate trading on the following Tuesday.
Balchunas believes that Ether futures ETFs have a 90% chance of rolling out in early October – a prophecy that’s beginning to look starkly accurate.
“The jockeying has begun in full… Game on,” he said.
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