Valkyrie Funds Looks to Launch Ethereum Strategy ETF
Asset management firm Valkyrie Funds has filed for an Ethereum Strategy exchange-traded fund (ETF) that will invest in Ether futures.
According to a Wednesday filing with the Securities and Exchange Commission, the new fund, called the Valkyrie Ethereum Strategy ETF, aims to capitalize on the growing interest in Ethereum (ETH) futures.
Unlike traditional investment vehicles that directly invest in assets, the Valkyrie Ethereum Strategy ETF will focus on investing in exchange-traded futures contracts on Ether.
The fund will also explore collateral investments, including high-quality securities like Treasury bonds and commercial paper, to provide investors with potential capital appreciation.
In the filing, Valkyrie Funds highlighted the unique risks associated with Ether and Ether futures.
Specifically, the company emphasized the volatility and unpredictability of these assets, noting that the value of investments in the fund could decline significantly, potentially reaching zero.
"Ether and ether futures are a relatively new asset class," Valkyrie said in the filing.
"They are subject to unique and substantial risks, and historically, have been subject to significant price volatility. The value of an investment in the Fund could decline significantly and without warning, including to zero."
Valkyrie Fund has already introduced a Bitcoin Strategy ETF and a Bitcoin Miners ETF to the market.
Earlier this week, London-based Jacobi Asset Management announced the release of Europe’s first spot Bitcoin ETF, which will be listed on the EuroNext Amsterdam Exchange.
The ETF went live after a one-year delay due to unfriendly market conditions after it received approval from the Guernsey Financial Services Commission (GFSC) in October
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