The broader cryptocurrency space is looking for crypto-based exchange-traded funds (ETF), one of the popular investment firms in traditional finance. Though there are several such investment vehicles that persist, looking at the scale of the global crypto market, companies believe more opportunities can be filled for more. One such effort brought fruitful results for Valkyrie Investment when the fund manager got approval for the first Ethereum (ETH) futures ETF.
Reuters reported that Valkyrie Funds LLC was already offering Bitcoin (BTC) futures ETFs to its customers. Now after the approval from the United States Securities and Exchange Commission (SEC), it will include Ethereum futures ETF offerings in the same product.
The product will be offered from Monday after renaming it as Valkyrie Bitcoin and Ethereum Strategy ETF, said Steven McClurg, chief investment officer at the firm.
As mentioned above, companies see great potential in the crypto ETFs given the soaring interest in digital assets. The number of applications with the SEC for crypto ETFs has seen an increase in the last few months.
Valkyrie Investments was not the only one in the race to procure an ETH ETF as counterparts such as VanEck and ProShares are also seeking approval for it.
In contrast to hybrid ETF offerings from Valkyrie, ProShares, and VanEck are set to facilitate full-fledged Ethereum futures ETF offerings. Both the companies indicated to launch their own products anytime soon. However, none of them gave any dedicated timeline for the potential launch, according to Reuters.
Movement in Ethereum’s Market After ETF Approval
After the news of the Ethereum futures exchange-traded fund from Valkyrie getting approval from the U.S. regulator, the price of cryptocurrency shot up. Currently, ETH is trading at $1,682 after gaining over 4% in the last 24 hours. This resulted in significant liquidations within one day of the ETF launch announcement.
According to Benzinga, in the aftermath of ETH futures news and ETH price rise, about $13.78 Million worth of positions got liquidated. The majority portion of the liquidated amount was of short positions. It was seen that ETH saw short positions liquidations worth more than $11 Million in the last 24 hours.
Increasing Interest Towards ETFs
In the last several months, prominent traditional finance (TradFi) players were seen to file for ETFs with the SEC. Biggest asset manager, BlackRock’s filing for spot Bitcoin ETF with the SEC in June this year was the kickstart moment for the instance.
In the coming days, other leading asset management companies and investment firms like Valkyrie Investment, Fidelity Investments, Invesco, WisdomTree, and several others also went to file for the offerings. However, until the last update, the financial regulator has reportedly put the process on halt. This leads to the crypto community needing to wait longer for spot Bitcoin ETF offerings as the decision is delayed.