Asset management firm Valkyrie, based in Tennessee, has submitted a regulatory application to the U.S. Securities and Exchange Commission (SEC) for an “Ethereum Strategy ETF,” focusing on ether futures and other related assets. This move follows the recent acceptance of Valkyrie’s application for a spot bitcoin ETF by the SEC.
As interest from established players in the cryptocurrency sector grows, the pursuit of crypto-based exchange-traded funds (ETFs) has become a promising development, offering optimism after a challenging year for the digital assets industry. In 2021, U.S. regulators permitted ETFs tracking the price of bitcoin futures, with the first bitcoin futures-based ETF commencing trading later that year. The introduction of these products was associated with increased investment in crypto assets and a surge in market prices.
While Canada has already approved a spot bitcoin ETF, the United States has yet to do so. The SEC has previously rejected several applications for spot bitcoin ETFs, but recent developments indicate a potential change in stance. The SEC’s willingness to review applications, such as the one filed by Blackrock, signals a more open approach to crypto ETFs.
Valkyrie’s recent application for an Ethereum Strategy ETF underscores the industry’s continuous push towards diversification and innovation within the ETF space. With the SEC also considering Valkyrie’s spot bitcoin ETF application, the regulatory landscape for cryptocurrency-based financial products is evolving, potentially leading to increased mainstream adoption of digital assets.