The Tennessee-headquartered asset management firm, Valkyrie Investments has filed for an Ethereum Strategy exchange-traded fund
(ETF). This move followed the recent resurgence of the cryptocurrency sector
and the growing interest from established asset managers in exploring
derivative-based products such as the spot Bitcoin ETF.
Unlike traditional ETFs
that track stocks or commodities, the Ethereum Strategy ETF is designed to
invest in Ether futures and a diversified range of collateral assets, Reuters
reported citing documents filed with the Securities and Exchange Commission
(SEC).
The approval of ETFs
tracking the price of Bitcoin futures contracts in 2021 marked a significant
milestone for the digital asset industry. The SEC’s decision to greenlight
these ETFs was seen as a pivotal moment, underscoring the broader acceptance of
digital assets.
However, the road to
regulatory approval for spot Bitcoin ETFs has been less smooth. The regulator’s
concerns about trading surveillance, fraud prevention, and market manipulation
have led to the rejection of numerous applications for spot Bitcoin ETFs.
In July, Valkyrie
refiled its application with the SEC for spot Bitcoin ETF. Joined by prominent
names like BlackRock and Fidelity, Valkyrie is leveraging its partnership with
Coinbase to strengthen its bid for the highly anticipated ETF. Valkyrie’s
new filing highlighted
the integral role of surveillance-sharing agreements in the ETF application
process.
Regulatory Setbacks
Valkyrie initially filed
for the spot Bitcoin ETF in 2021 and refiled its paperwork in June 2023 after facing
regulatory challenges.
BlackRock, Fidelity, and other major asset managers also recently resubmitted their
applications for the ETF. Notably, Valkyrie already holds approval for a
Bitcoin futures ETF listed on Nasdaq, which was granted in May 2022.
Towards the end of 2021,
the SEC rejected proposals for Bitcoin exchange -traded funds (ETFs) for both
Valkyrie and Kryptoin. Prior to this decision, the regulator had turned down a
spot Bitcoin fund application
from VanEck and
deferred its decision on a similar proposal from Grayscale Bitcoin Trust. The
regulator voiced concerns about the potential for fraud and manipulation.
Elsewhere,
Jacobi Asset Management introduced Europe’s inaugural
spot Bitcoin exchange-trade (ETF) on
Euronext, Amsterdam. According to a report by Finance Manages, this launch
positioned Europe ahead of the US in approving a spot Bitcoin ETF and signified
a notable step towards institutionalizing cryptocurrency investments within a
regulated framework.
The Tennessee-headquartered asset management firm, Valkyrie Investments has filed for an Ethereum Strategy exchange-traded fund
(ETF). This move followed the recent resurgence of the cryptocurrency sector
and the growing interest from established asset managers in exploring
derivative-based products such as the spot Bitcoin ETF.
Unlike traditional ETFs
that track stocks or commodities, the Ethereum Strategy ETF is designed to
invest in Ether futures and a diversified range of collateral assets, Reuters
reported citing documents filed with the Securities and Exchange Commission
(SEC).
The approval of ETFs
tracking the price of Bitcoin futures contracts in 2021 marked a significant
milestone for the digital asset industry. The SEC’s decision to greenlight
these ETFs was seen as a pivotal moment, underscoring the broader acceptance of
digital assets.
However, the road to
regulatory approval for spot Bitcoin ETFs has been less smooth. The regulator’s
concerns about trading surveillance, fraud prevention, and market manipulation
have led to the rejection of numerous applications for spot Bitcoin ETFs.
In July, Valkyrie
refiled its application with the SEC for spot Bitcoin ETF. Joined by prominent
names like BlackRock and Fidelity, Valkyrie is leveraging its partnership with
Coinbase to strengthen its bid for the highly anticipated ETF. Valkyrie’s
new filing highlighted
the integral role of surveillance-sharing agreements in the ETF application
process.
Regulatory Setbacks
Valkyrie initially filed
for the spot Bitcoin ETF in 2021 and refiled its paperwork in June 2023 after facing
regulatory challenges.
BlackRock, Fidelity, and other major asset managers also recently resubmitted their
applications for the ETF. Notably, Valkyrie already holds approval for a
Bitcoin futures ETF listed on Nasdaq, which was granted in May 2022.
Towards the end of 2021,
the SEC rejected proposals for Bitcoin exchange -traded funds (ETFs) for both
Valkyrie and Kryptoin. Prior to this decision, the regulator had turned down a
spot Bitcoin fund application
from VanEck and
deferred its decision on a similar proposal from Grayscale Bitcoin Trust. The
regulator voiced concerns about the potential for fraud and manipulation.
Elsewhere,
Jacobi Asset Management introduced Europe’s inaugural
spot Bitcoin exchange-trade (ETF) on
Euronext, Amsterdam. According to a report by Finance Manages, this launch
positioned Europe ahead of the US in approving a spot Bitcoin ETF and signified
a notable step towards institutionalizing cryptocurrency investments within a
regulated framework.
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- Source: https://www.financemagnates.com//cryptocurrency/ethereum-enters-the-etf-realm-valkyrie-bids-for-ether-based-etf-approval/
