Against the backdrop of the SEC’s ongoing deliberation and the looming potential for a U.S. government shutdown, some market observers have begun speculating. They believe that substantial decisions or postponements related to cryptocurrency ETFs could emerge in the near future. This could happen, perhaps, even before the end of September.
Valkyrie, a respected asset management firm, has taken a significant strategic step. They have announced their intention to provide United States investors with access to Ether (ETH) futures. This will be done within the framework of their existing Bitcoin Strategy exchange-traded fund (ETF).
This move is a significant shift from the usual approach, as it combines Ether and Bitcoin futures into one investment. This innovative achievement sets Valkyrie apart from its peers.
Additionally, starting from October 3, the fund will undergo a change in its name. It will reemerge as the Valkyrie Bitcoin and Ether Strategy ETF.
Incorporating Ether Futures in ETFs
As of this publication, the SEC had not issued any official announcements. These announcements are necessary for the proposed rule change required to list a new Ether futures ETF on the Nasdaq Stock Exchange.
However, the commission had taken a step by ordering “additional analysis” concerning the listing of the Valkyrie Bitcoin Fund, which is a spot BTC ETF.
Valkyrie had submitted its application to the SEC on August 16, seeking approval for a fund that doesn’t directly offer a path to invest in Ether. Instead, it channels investments through ETH futures contracts. Notably, Valkyrie also offers a Bitcoin Miners ETF that tracks companies making profits from cryptocurrency mining.
Interestingly, Valkyrie was among the pioneering entities in the US to introduce an ETF linked to BTC futures back in 2021.
Consequently, Bloomberg Intelligence analyst James Seyffart’s insights add to the intrigue around the possible launch of Ether futures ETF trading. This possibility is speculated to unfold during the first week of October.
Government Shutdown’s Impact and Shifting Crypto ETF Landscape
This speculation is tied to the possibility of a U.S. government shutdown. This scenario could happen if Congress doesn’t vote on a bill to secure government funding for the next fiscal year by September 30th. This bill also requires President Joe Biden’s endorsement.
During a government shutdown, the SEC and other federal agencies would operate with a reduced workforce. It’s noteworthy that the SEC has not yet granted approval for any spot crypto ETFs to trade in the United States.
However, recent developments suggest a potential shift in the regulatory stance. For example, Grayscale Investments recently achieved a legal victory regarding its spot BTC ETF. This has led to speculation about a possible revision of the regulatory approach on this matter.
Valkyrie, along with several other enterprises, including the influential BlackRock, has submitted applications for spot crypto ETFs. They are currently awaiting regulatory approval.