Valkyrie will hold back on Ether futures contract purchases until the launch of the ETF

Asset management firm Valkyrie has told the U.S. Securities and Exchange Commission that it will hold off on approving an exchange-traded fund, or ETF, to gain exposure to Ether (ETH) futures rather than making upfront purchases.

In a Sept. 29 filing, Valkyrie said it would not make certain purchases of ETH futures contracts “until the effectiveness of the amendment,” which reflects the ETF's primary investment strategy. The firm told Cointelegraph on September 28 that it plans to allow investors exposure under the Bitcoin and Ether strategy ETF, with purchases planned before a launch in the first week of October.

“The Fund will liquidate any positions in Ether futures contracts,” the SEC filing said.

The plot thickens, Valkyrie issues 497, they don't buy ether futures as long as they live (prob twee) and sell the ether futures they bought (to jump the line a bit). The SEC should threaten to take it out. Curse. pic.twitter.com/cKaV7k7AJs

— Eric Balchunas (@EricBalchunas) September 29, 2023

Cointelegraph reached out to Valkyrie but did not receive a response at the time of publication. It is not known what could have caused the company to change its position in less than 24 hours. Valkyrie filed with the SEC in August to list its ether futures ETF on the Nasdaq stock market, but the regulator has not reached a decision on a rule change that would allow the investment vehicle.

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Several ETFs offering exposure to Ether futures are expected to begin trading in the first week of October, including those from VanEck, Bitwise and ProShares. However, on September 28, the SEC delayed its decision on proposals from the Valkyrie Spot BTC ETF, as well as from BlackRock, Invesco and Bitwise.

The delays came weeks before the SEC's scheduled ETF deadline, with many suggesting the regulator was reacting to a possible US government shutdown. Members of Congress have until September 30 for US President Joe Biden to sign into law a government funding bill.

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