The SEC delays Spot Bitcoin ETFs, but Valkyrie launches Ether Future ETF

The Securities and Exchange Commission (SEC) has once again delayed its decision on spot Bitcoin ETFs, including one from Valkyrie. This means that there is still no spot Bitcoin ETF approved in the United States, despite growing demand for these products.

For investors who are eager to gain exposure to Bitcoin, this news can be frustrating. However, Valkyrie is not giving up on crypto. The company has just launched a new ETF that provides indirect exposure to Ether (ETH) through futures contracts. This is the first ETF of its kind in the United States, and it shows that Valkyrie is committed to providing investors with access to the crypto market.

So, what does this mean for investors? It is important to understand the key differences between spot Bitcoin ETFs and futures contracts. 

  • A spot Bitcoin ETF would allow investors to buy and sell shares of a fund that is backed by physical Bitcoin

  • Futures contracts, on the other hand, are agreements to buy or sell an asset at a predetermined price on a future date.

The New Valkyrie Ether ETF

In the case of Valkyrie's new ETF, investors who invest in this ETF are essentially betting on the future price of Ether. If the price of Ether goes up, the value of the ETF will also go up. However, if the price of Ether goes down, the value of the ETF will also go down.

While futures contracts can be a complex way to invest in crypto, they offer a number of advantages over traditional spot investments. For example, futures contracts can be used to hedge against risk or to gain exposure to an asset class without having to purchase the asset directly.

The SEC's continued delays on spot Bitcoin ETFs are likely due to a number of factors, including concerns about volatility and investor protection. However, the growing demand for ETFs suggests that there is a strong appetite for regulated crypto exposure among investors.

Valkyrie's new Ether futures ETF is a positive development for the crypto industry as a whole. It shows that there is growing interest in institutional-grade crypto investment products. The ETF could also help to increase awareness of crypto among mainstream investors.

About the Author

Ex-crypto miner and crypto enthusiast since 2019.

Latest writings