According to a Securities and Exchange Commission (SEC) filing on August 16, Valkyrie Investments has filed for an Ethereum futures exchange-traded fund (ETF).
According to the filing, nearly all of the fund’s assets will be invested in exchange-traded Ethereum futures, with only a small portion in collateral investments like cash, cash-like instruments, or high-quality securities. The filing’s text emphasizes that the fund’s assets will not be invested in Ethereum (ETH).
According to Valkyrie’s filing, the fund’s investment capacity may be limited by Chicago Mercantile Exchange (CME) regulations.
Currently, these limits limit ETH futures positions to 8,000 contracts per month. Each contract is worth 50 Ethereum (currently $91,100).
If the fund reaches these limits, Valkyrie said it may invest in longer-dated futures contracts and additional collateral investments.
In an August 4 filing, Valkyrie attempted to combine its Bitcoin futures ETF (dubbed the “Bitcoin Strategy ETF”) with Ethereum futures.
If the filing is approved, Valkyrie will integrate both investments and rename the fund as of Oct. 3. The document does not specify the status of that filing or its relationship to the recent filing.
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