Valkyrie seeks SEC approval for an Ether futures exchange-traded fund (ETF), expanding investment options beyond Bitcoin futures.
In the proposal, the ETF won’t directly invest in ETH itself. Instead, it aims to purchase a range of ETH futures contracts. Within its decentralized ecosystem, users widely employ ETH, Ethereum’s native cryptocurrency, for conducting peer-to-peer transactions.
The submitted document notes that Ether’s classification can vary, potentially being considered a currency or digital commodity depending on its usage in specific transactions. Although some retailers, both large and small, accept ETH as payment, its use for commercial and retail transactions remains relatively limited. Ether also exhibits characteristics of a store of value but it has been marked by considerable price volatility.Valkyrie’s application outlines a specific limit on the ETF’s investment in Ether futures contracts, capping it at 8,000 contracts per month to adhere to position limits set by the Chicago Mercantile Exchange.
Apart from Ether futures, the ETF plans to invest its remaining assets in cash, cash-like instruments, or high-quality securities. These include U.S. government-issued bills, notes, bonds, money market funds, and corporate debt securities. Notably, Valkyrie is among several major asset management players seeking approval for an Ether futures ETF for U.S. investors. The others include
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