Valkyrie to offer Ethereum futures as SEC delays Bitcoin ETF approval

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Valkyrie has announced plans to offer Ethereum (ETH) futures exposure after the Securities and Exchange Commission (SEC) decided to pending Valkyrie’s Bitcoin ETF application.

On September 28, a Valkyrie spokesperson revealed that its BTC Strategy ETF would allow investors to access both ETH and BTC futures in a single investment. Beginning on October 3, the fund’s name will be changed to the Valkyrie Bitcoin and Ether Strategy ETF.

Senior ETF Analyst at Bloomberg Intelligence, Eric Balchunas, posted on Twitter, revealing that Valkyrie had started the process by buying Ether futures for $BTF before the official name change on Tuesday.

The SEC has not yet published a proposed rule change to permit the listing of a new Ether futures ETF on the Nasdaq Stock Exchange. Nonetheless, the commission has issued an order for further analysis concerning the listing of the Valkyrie Bitcoin Fund, which is a spot BTC ETF.

SEC to speed up Ether futures ETF launches

In a recent update, Balchunas revealed that the SEC was looking to speed up the launch of Ether futures ETFs in anticipation of a potential U.S. government shutdown, which might occur on October 1 if Congress does not pass funding legislation by the end of September.

The SEC has allowed applicants a 48-hour window until September 29 to update their applications. If they do, their ETFs will become effective on October 2 and start trading on Tuesday, October 3, 2023.

Balchunas and Bloomberg ETF analyst James Seyffart estimate that there is a 90 percent chance of Ether futures ETFs starting to trade in early October. Valkyrie’s Bitcoin and Ether ETF is expected to be among the first.

In August, Valkyrie filed with the SEC to transform its Bitcoin Strategy ETF from solely holding Bitcoin futures contracts to including Ether futures as well. Seyffart and Balchunas emphasized that the first pure Ether futures-based ETF product would come from Volatility Shares, becoming effective on October 11 and launching on October 12.

However, both Bloomberg ETF analysts predict that not all 15 Ethereum futures ETFs filed by 11 applicants will launch. Among the issuers are Grayscale, VanEck, Bitwise and ProShares, in addition to Valkyrie and Volatility Shares.

VanEck’s pre-launch ETF ads hint Ether futures launch

Investment manager VanEck aired two “Enter the Ether” TV commercials on September 28, unveiling its forthcoming Ethereum Strategy ETF. On the same day, VanEck issued a press release about EFUT, confirming it would be listed on the Chicago Board Options Exchange and managed by Greg Krenzer, head of active trading at VanEck.

Balchunas and Seyffart highlighted that the TV ads could suggest that Ether futures ETFs are “happening sooner than expected.”

Seyffart maintained that VanEck’s new ETF would launch on Monday despite a September 29 document indicating it would not take effect for another 60 days.

“Our understanding is that the SEC is accelerating approvals for these things,” Seyffart said.

VanEck’s first “Enter the Ether” ad is a brief and unconventional 15-second video showcasing five actors with deadpan expressions, accompanied by peculiar alien-sounding music. Meanwhile, the second ad is more direct, lasting for 30 seconds, and hints at an upcoming “shift.”

Regarding the ads, Balchunas anticipated increased marketing efforts from ETF issuers as ETFs get approved, especially when spot Bitcoin ETFs receive approval.

“It will be a marketing war like we’ve never seen since they all do same thing and launch on same day. Unprecedented,” Balchunas said.