Valkyrie Funds halts ethereum purchases for exchange-traded fund

By Suzanne McGee

(Reuters) -Monetary companies agency Valkyrie Funds LLC mentioned on Friday it can halt shopping for of ethereum for the Valkyrie Bitcoin and Ether Technique ETF and unwind any positions already acquired, a stumbling block in its bid to be the primary to carry an change traded fund (ETF) tied to the cryptocurrency ethereum to the market.

“The Fund won’t buy ether futures contracts till the effectiveness of an modification to the Fund’s registration assertion considering the addition of ether futures contracts to the principal funding technique of the Fund,” Valkyrie mentioned in a submitting with the Securities and Change Fee. “Till such time, the Fund will unwind any current positions in ether futures contracts.”

Valkyrie introduced Thursday it had obtained the inexperienced gentle to amass ethereum futures contracts as a part of the conversion of an current ETF tied solely to Bitcoin to incorporate ethereum. It might have been the primary in a collection of ETFs to supply publicity to “ether.”

In a press launch, Valkyrie mentioned it expects the ETF’s conversion will change into efficient “upon the sooner of October 3, 2023, or the time at which the SEC accelerates effectiveness of the registration assertion.”

The SEC couldn’t instantly be reached for remark. Individually, VanEck, ProShares and Invesco all have filed to listing quite a lot of ETFs tied to ethereum. Merchants and media stories anticipate them to launch beginning Monday.

(Reporting by Suzanne McGeeEditing by Chris Reese)