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,…
