Asset management company Valkyrie has filed an application for an Ether (ETH) futures exchange-traded fund (ETF) with the US Securities and Exchange Commission (SEC). This move comes after Valkyrie resubmitted its Bitcoin futures ETF application, which was accepted by the SEC in July. If approved, the ETF will invest in several Ether futures contracts rather than directly holding the cryptocurrency.

According to the application, Ether is considered both a currency and a digital commodity, depending on its use in transactions. While some retailers accept Ether as a form of payment, its use for commercial and retail transactions is relatively limited. The price of Ether has also experienced significant volatility in the past.

Despite the news, the price of Ethereum (ETH) had a minimal reaction and was trading at $1,819.73, down 0.96% in the last 24 hours.

FAQs

What is Valkyrie?

Valkyrie is an asset management company that specializes in creating investment products focused on cryptocurrencies.

What is an ETF?

An ETF, or exchange-traded fund, is a type of investment fund that holds assets such as stocks, bonds, or commodities. ETFs can be traded on stock exchanges, allowing investors to gain exposure to a diversified portfolio of assets.

What is Ether?

Ether is the native cryptocurrency of the Ethereum blockchain. It is used for peer-to-peer transactions and is also used to pay for fees and services on the Ethereum network.

What is the SEC?

The US Securities and Exchange Commission (SEC) is a government agency responsible for regulating the securities industry, protecting investors, and maintaining fair and orderly markets.

Summary

Valkyrie has filed an application for an Ether futures ETF with the SEC. This follows the company’s resubmission of its Bitcoin futures ETF application, which was accepted by the SEC in July. If approved, the ETF will invest in Ether futures contracts rather than directly holding the cryptocurrency.

Source: CoinJournal