Valkyrie Friday morning said it will not purchase ether (ETH) futures until the U.S. Securities and Exchange Commission’s (SEC) approval of adding that vehicle to its Bitcoin Strategy ETF (BTF) is effective.
In an SEC Form 497 filing, the asset manager also said it would unwind any ether futures purchases it had already made.
The quick backtrack comes after the firm yesterday told CoinDesk (and others) it had begun adding ether futures exposure to the BTF after gaining SEC approval.
Bloomberg ETF analyst Eric Balchunas tweeted that the unwinding of ether futures purchases from Valkyrie is an example of the SEC not wanting to be a “kingmaker via their policies and will do whatever they can to prevent someone from launching on their own like BITO [ProShares Bitcoin Strategy ETF] in 2021.”
Valkyrie did not immediately respond to CoinDesk’s request for comment.
Correction (15:50 UTC, Sept. 29): Removes incorrect reference to assets under management at Valkyrie.
CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk offers all employees above a certain salary threshold, including journalists, stock options in the Bullish group as part of their compensation.