Valkyrie files to launch Ethereum Strategy ETF

Valkyrie Fundsfiled with the SEC to launch Valkyrie Ethereum Strategy ETF, which will invest in Ethereum futures on CME and high-quality instruments such as U.S. Treasuries and commercial paper.

The instrument does not entail direct exposure to the second-largest cryptocurrency.

In early August 2023, the SEC received six applications to launch Ethereum futures ETFs.

Separately, asset manager Direxion sent to the regulator proposal for the approval of an ETF based on a basket of CME-traded futures on the first and second-largest cryptocurrencies.

Earlier in the US, filings to launch Ethereum-based ETFs were filed by Kelly Strategic Management, WisdomTree and Kryptoin.

In July 2023 Nasdaq sent to the SEC updated filing for launching a spot Bitcoin ETF on behalf of Valkyrie Funds. The document added mention of Coinbase as a partner in the so-called joint surveillance agreement.

This mechanism became a key addition to BlackRock’s proposal. 

Following the Commission’s critique of its details, Nasdaq, on behalf of the management company filed a revised application in light of the recommendations. Similarly, Invesco, VanEck, 21Shares, WisdomTree and Fidelity did likewise, with documents that also did not account for this specificity.   

Earlier, Valkyrie, which initially filed the proposal after rivals, reacted later than others. The initial version envisaged listing on Nasdaq and tracking the asset’s value via the CME CF index.

Earlier, Bloomberg analyst James Seiffart raised the odds of approval for an ETF based on the first cryptocurrency to 65%.