Giant Investment companies Valkyrie and VanEck are now all set to launch the Ethereum Futures ETFs after their applications got approved by the US Securities and Exchange Commission (SEC).
According to the Fox Business report on Thursday, September 28, the Nashville-based asset manager Valkyrie Investments has won the race to offer the first exchange-traded fund (ETF) in Ethereum Futures contracts, marking a significant milestone in making crypto mainstream in the US. VanEcK is the second firm to debut its product in the coming few days.
— VanEck (@vaneck_us) September 28, 2023
Valkyrie Investments’ Ethereum Futures ETF
Valkyrie is the first to win SEC approval out of nine firms that applied for an Ethereum Futures ETF. Per the details, the firm’s Ethereum ETF will be an extension of its already operational Bitcoin futures ETF on the Nasdaq stock exchange, the Valkyrie Bitcoin Strategy ETF.
This means that $BTF will now provide investors exposure to both Bitcoin [BTC] and Ether [ETH] futures contracts under one wrapper. The name of the product will now be updated to Valkyrie Bitcoin and Ether Strategy ETF, while the ticker will remain BTF. Reports suggest that the trading is slated to begin on Friday, September 29, while the name change will take effect on October 3.
VanEcK Ethereum Strategy ETF (EFUT)
The $77 billion asset manager VanEck is also getting ready to launch its Ethereum Futures ETF. According to a press release on Thursday, September 28, VanEck’s product will be named VanEck Ethereum Futures ETF (EFUT) and will be listed on the Chicago Board Options Exchange (CBOE). Bloomberg ETF analyst James Sayffart expects an EFUT launch on Monday, October 2.
The press release reads:
“The Fund will invest in standardized, cash-settled ETH futures contracts traded on commodity exchanges registered with the Commodity Futures Trading Commission (CFTC). Currently, the only ETH futures the Fund intends to invest in are those traded on the Chicago Mercantile Exchange.”
The approval of Ethereum futures ETFs was on the cards as the SEC has already signaled their willingness to approve Ether futures ETFs. Bloomberg analyst Eric Balchunas on Thursday said the securities regulator was in a hurry to approve these applications before a looming US government shutdown on Saturday, September 30.
Nine firms have filed 15 applications for different ETH futures ETFs, all of which could be approved this week, and the firms would be scrambling to launch their products next week, leading to an exciting marketing war.
On the other hand, the SEC continues to delay the decision on spot ETFs on Bitcoin. As recently reported, the agency has extended the deadline for decision on Ark 21Shares and GlobalX’s spot Bitcoin ETF applications. Latest reports say that the SEC is launching additional proceedings to assess Bitcoin ETF applications, further delaying the final decision. On the other hand, the race for a spot in Ethereum ETF has also begun.