Valkyrie first to offer ether futures ETF
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Valkyrie's bitcoin futures ETF is adding ether, and crypto markets are clearly enthusiastic.
Why it matters: Bitcoin (BTC) and ether (ETH) prices are up nearly 4% over the last 24 hours on the news, as the exchange traded fund will soon offer a 50/50 exposure to derivatives of the two largest digital assets.
Driving the news: Valkyrie Funds' Bitcoin and Ether Strategy ETF will start trading ether futures Friday.
- The fund's name will change effective Oct. 3. Its ticker symbol will remain "BTF."
- As per usual, the whole crypto market is up following the momentum of its two leading assets.
Details: Valkyrie's ETF was previously BTC futures-only and it previously filed to convert to a dual-exposure fund — an overnight filing with the Securities and Exchange Commission allowed them to start trading Friday.
- Its prime position to convert its existing ETF allowed it to beat others that filed to launch new funds with a similar strategy.
The intrique: The SEC's stance on ether-futures investment products was thought last month to have changed, after a slew of application withdrawals from would-be ETF issuers caused earlier speculation that the regulator had signaled plans to deny them.
- That the regulatory agency did not block Valkyrie's fund and others like it, would confirm its reversed posture.
Be smart: Derivatives-based ETFs differ from spot ETFs, where the fund would provide investors with direct exposure.
What we're watching: Spot bitcoin ETF application decisions are likely delayed to January, but the SEC's deadline to respond to a court's ruling on Grayscale's application for one is in a couple weeks.
- There are also pending applications for a spot ETH ETF.
Go deeper: Grayscale presses SEC for meeting on GBTC spot bitcoin conversion
