{"id":553620,"date":"2023-09-30T13:30:22","date_gmt":"2023-09-30T13:30:22","guid":{"rendered":"https:\/\/uniquehot.com\/?p=553620"},"modified":"2023-09-30T10:08:23","modified_gmt":"2023-09-30T10:08:23","slug":"ethereum-etf-valkyrie-halts-purchase-of-eth-futures-contracts","status":"publish","type":"post","link":"https:\/\/uniquehot.com\/news\/ethereum\/ethereum-etf-valkyrie-halts-purchase-of-eth-futures-contracts\/","title":{"rendered":"Ethereum ETF: Valkyrie Halts Purchase Of ETH Futures Contracts"},"content":{"rendered":"

Asset management firm Valkyrie, one of the frontrunners for the first Ethereum ETF (exchange-traded fund) in the United States, has decided to pause its purchase of Ether futures contracts until the US Securities and Exchange Commission approves an Ether futures ETF. This comes barely a day after the asset manager <\/span>reportedly secured approval to offer investors exposure<\/span><\/a> to Ether futures under its existing strategy ETF (BTF).<\/span><\/p>\n

SEC Might Be Behind This Action, Bloomberg Expert Speculates<\/strong><\/h2>\nOn Friday, September 29, Valkyrie <\/span>filed a 497<\/span><\/a> with the SEC, saying that it would halt the purchase of Ether futures contracts and unwind its existing positions.\u00a0<\/span><\/p>\n
A part of the filing read:<\/span><\/p>\n
Effectively immediately, The Fund will not purchase ether futures contracts until the effectiveness of an amendment to the Fund\u2019s registration statement contemplating the addition of ether futures contracts to the principal investment strategy of the Fund. Until such time, the Fund will unwind any existing positions in ether futures contracts.<\/span><\/p><\/blockquote>\n
As<\/span>\u00a0reported<\/span><\/a> on Thursday, September 28, the SEC appears to be fast-tracking the approval of Ethereum futures ETF in anticipation of a potential US government shutdown next week.\u00a0<\/span><\/p>\n
Following this report, Valkyrie <\/span>disclosed<\/span><\/a> that it had begun purchasing Ether futures contracts for its combined strategy ETF ahead of a possible launch next week.<\/span><\/p>\n
However, this latest action poses questions about the odds of Valkyrie becoming one of the first firms to introduce an Ethereum ETF in the United States.\u00a0<\/span><\/p>\n
Related Reading: Ethereum Price Registers Breakout But Lacks Momentum, $1,620 Is The Key<\/a><\/div>\n
Bloomberg analyst Eric Balchunas has put forward a possible reason for Valkyrie\u2019s decision to halt and unwind its Ether futures purchases. \u201cSEC must have threatened them to cut it out,\u201d Balchunas speculated via a post on X (formerly Twitter).<\/span><\/p>\n
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The plot thickens, Valkyrie just put out 497 that they are in fact not going to buy Ether futures until they are live (prob Tue) and are going to sell the Eth futures they bought (in an effort to jump line a bit). SEC must have threatened them to cut it out. Damn. https:\/\/t.co\/yDkggCw3d1<\/a> pic.twitter.com\/cKaV7k7AJs<\/a><\/p>\n
— Eric Balchunas (@EricBalchunas) September 29, 2023<\/a><\/p><\/blockquote>\n