Valkyrie, despite SEC approval, reverses plans for an ETH-futures ETF, while other ETFs get the go-ahead. A potential government shutdown looms.
- Valkyrie unwinds ETH-futures positions after initial SEC approval, delaying its ETF launch.
- Other ETH-futures ETFs from different entities are still slated to launch.
- SEC flooded with crypto-spot ETF applications from various firms amidst potential government shutdown.
- A government shutdown could delay progress in SEC cases against crypto entities and the launch of crypto-spot ETFs.
- Current market technicals send mixed signals for both BTC and ETH.
Valkyrie, initially poised to launch the “Valkyrie Bitcoin and Ether Strategy ETF” after acquiring SEC’s approval for adding Ethereum futures to its Bitcoin futures ETF, has made a surprising U-turn. The company decided to unwind its existing ETH-futures positions, stipulating that the fund will not purchase ether futures contracts until the effectiveness of an amendment to the fund’s registration statement contemplating the addition of ether futures contracts is realized.
BIG BREAKING 🚨🚨🚨
Valkyrie's Ethereum Futures ETF has been approved and will begin trading tomorrow, according to FOX!! pic.twitter.com/tgPboDVvXd
— BITCOINLFG® (@bitcoinlfgo) September 29, 2023
Valkyrie Goes Back on ETF
However, Chief Investment Officer Steven McClurg confirmed that despite Valkyrie’s reversal, other entities like VanEck and ProShares have received the go-ahead from the SEC to launch their ETH-futures ETFs.
In the meantime, the SEC continues to witness a surge in filings for crypto-spot ETFs from various firms like Invesco and Galaxy. However, the looming possibility of a U.S. government shutdown threatens to delay progress in SEC’s cases against several crypto entities, including Binance, Coinbase, and Ripple, and could potentially stall the launch of crypto-spot ETFs.
In the context of market dynamics, Bitcoin remains below crucial EMAs, emanating bearish price signals, while Ethereum, sitting above the 50-day EMA, sends mixed, more optimistic signals in the near term.
Valkyrie’s unexpected reversal on the launch of its ETH-futures ETF, despite receiving the green light from the SEC, emphasizes the prevailing volatility and unpredictability within the cryptocurrency sector. The SEC’s accelerated approvals for ETH-futures ETFs symbolize the increasing prominence and acceptance of Ethereum in the financial landscape.
To Sum it All Up….
The inundation of crypto-spot ETF applications to the SEC amidst a potential government shutdown portrays the burgeoning interest and the intricate interplay between regulatory developments and market dynamics in the crypto space. These unfolding scenarios accentuate the critical role of regulatory clarifications and advancements in shaping the trajectory of cryptocurrency markets and investments. This influx of applications and the diverse market signals reflect the dynamic, multifaceted nature of the crypto environment, where adaptability and vigilance become paramount for investors and entities alike.