Valkyrie’s Crypto Futures Fund to Merge with Ether Futures ETFs

Key Takeaways:

• Valkyrie secures approval for Ethereum (ETH) futures ETF.
• A revised strategy combining Ethereum (ETH) and Bitcoin (BTC) futures contracts into a single ETF.
• The fund’s name will change to “Valkyrie Bitcoin and Ether Strategy ETF.”
• VanEck also prepares for the launch of its Ethereum futures ETF.

Introduction:

In recent developments, Valkyrie’s Bitcoin futures fund is set to merge into Ether futures ETFs in a 50-50 proportion by next week. The price of Ethereum (ETH) has experienced a noteworthy uptick, surpassing the $1,650 mark within the last 24 hours. This surge in ETH’s value can be attributed to Valkyrie’s strategic move of purchasing Ether futures contracts after obtaining approval to transform its Bitcoin futures contracts into a versatile two-in-one investment vehicle.

Valkyrie’s Pioneering Ethereum Futures ETF:

Valkyrie emerged as a trailblazer among various firms by gaining approval for an Ethereum (ETH) futures ETF. This milestone followed their diligent efforts to update their prospectus and provide enhanced risk disclosures related to Ether futures trading. James Seyffart, Bloomberg’s senior commodity strategist, clarified the trading mechanism for Valkyrie’s Ether futures contracts.

It’s misleading. @ValkyrieFunds‘ ticker is $BTF and it will begin holing a small % of ETH futures tomorrow (less than 10%). Will switch to 50% ETH 50% BTC next week. Other ETH futures ETFs will launch next week likely monday. Unsure of who or how many at this point. https://t.co/NjIeE7WIDt

— James Seyffart (@JSeyff) September 28, 2023

The fund’s revised strategy, slated to commence on October 3, combines both Ethereum (ETH) and Bitcoin (BTC) futures contracts into a single ETF, which will be renamed as the “Valkyrie Bitcoin and Ether Strategy ETF.” Despite the name change, the ETF will retain its existing ticker symbol, BTF.

SEC’s Swift Action on Ethereum Futures Contracts:

In recent days, the U.S. SEC has expedited the launch of Ethereum futures contracts, possibly in anticipation of a government shutdown. This proactive approach aligns with the objective of completing crucial tasks before a potential unavailability of SEC staff during a shutdown.

VanEck Prepares for Ether Futures ETFs:

Investment manager VanEck is also gearing up for the launch of its Ethereum futures exchange-traded fund (ETF), expected to debut as early as October 2nd. VanEck has initiated a marketing campaign, including TV commercials with an “Enter the Ether” theme, introducing its Ethereum Strategy ETF, EFUT, as “coming soon.” The fund intends to invest in Ether futures contracts exclusively traded on the Chicago Mercantile Exchange, managed by Greg Krezner, VanEck’s Head of Active Trading.

When you’re ready, ENTER THE ETHER. The VanEck Ethereum Strategy ETF ($EFUT) is coming soon. Read our press release: https://t.co/4QPOVd5nB2 pic.twitter.com/vSF3HzMuvC

— VanEck (@vaneck_us) September 28, 2023

Conclusion:

The crypto market is witnessing significant developments with Valkyrie’s innovative approach to merge Bitcoin and Ethereum futures contracts into a single ETF. This move, along with VanEck’s upcoming Ethereum futures ETF, reflects the growing interest and investment opportunities in the crypto space.

Source: CoinGape