Smooth Road Valkyrie Approval Of Bitcoin And Ether ETFs

Valkyre got the green light to provide ETF Bitcoin and Ethereum. (Photo; Doc. Livecoins)

JAKARTA - Valkyrie Asset Management has obtained approval to convert their Bitcoin Exchange Trade Fund (ETF) into a unique means of investment by combining Bitcoin and Ether futures contracts into one contract.

In their statement to CoinDesk, the company announced this bold move, making ETF Valkyrie Bitcoin Strategy the first ETF in the United States to provide exposure to two major cryptocurrencies, Bitcoin and Ether, in one contract.

Valkyrie has surpassed competition with companies like Grayscale and VanEck in the race to launch the Ether Futures ETF (ETH). On October 3, the ETF will be renamed Valkyrie Bitcoin and Ether Strategy ETF, but will retain the BTF ticker.

Valkyrie is a pioneer among nine leading asset management companies in the world that have applied for permits to operate Ether ETFs, including Bitwise, Grayscale, and VanEck.

Meanwhile, VanEck is also preparing to launch an ETF Futures Ethereum (ETH) product called the VanEck Ethereum Strategy ETF (EFUT). This ETF will focus on a standardized and cash-resolved ETH Futures contract, and will be listed on the CBOE exchange.

News of Valkyrie's approval to offer Ether futures contracts in their ETFs has moved the price of Ether upwards. The price of ETH jumped to 5% with an increasing trading volume of nearly 25%. This increase also resulted in liquidation of the short ETH position worth US$11 million (Rp171 billion) within 24 hours.

Major exchanges like OKX and Binance reported significant short ETH liquidation rates, with OKX recording $3.52 million in short liquidation, and Binance reporting $3.04 million. This move shows that the market is reacting positively to new developments in the crypto ETF world.