Valkyrie aims to provide crypto investors with exposure to Ether futures contracts. However, as stated in a September 29th SEC filing, the company has announced that it will refrain from making specific purchases reflecting changes in the primary investment strategy of the ETF until its effectiveness. In other words, substantial investments are not planned before the approval of the ETF.
The company had previously indicated its intention to expose investors to Ether and Bitcoin. However, this new development suggests that prior purchases have been suspended.
What is an ETF?
An ETF, or Exchange Traded Fund, is an investment fund that combines various assets. These funds typically aim to track the performance of an index or a specific asset class. Crypto ETFs facilitate access to digital assets.
Other ETF Applications
There are numerous ETF applications in the crypto space. Companies like VanEck, Bitwise, and ProShares are expected to offer exposure to Ether futures in the first week of October. However, on September 28th, the SEC delayed a proposal from Valkyrie for a spot Bitcoin ETF. Similarly, proposals from major players like BlackRock, Invesco, and Bitwise have also been postponed.
Reasons for Delays
These delays come weeks ahead of the ETF deadlines set by the SEC. Many believe that the regulator is responding to the potential government shutdown in the United States. Congress has until September 30th to submit a bill to fund the government for the next fiscal year, which President Joe Biden will need to sign into law.
The uncertainty surrounding Valkyrie’s ETF decision has become a significant concern for the crypto market. Investors eagerly await the approval of this product that would provide exposure to Ether futures. However, regulatory delays and uncertainties may prolong this process.