Double Impact: Valkyrie Files To Convert BTF To Bitcoin And Ether ETF

Asset management firm Valkyrie has moved to convert its Bitcoin Strategy exchange-traded fund (BTF) into a Bitcoin and Ether Strategy ETF.

According to the firm’s website, BTF is an actively managed exchange-traded fund (ETF) available through Nasdaq. BTF, which primarily invests in BTF futures contracts, represents one of Valkyrie’s first endeavors in the Bitcoin derivative product markets.

Valkyrie Files 497 For Bitcoin, Ether Futures ETF: Bloomberg Analyst

Investopedia defines form 497 as a regulatory document that allows investment companies and mutual funds to submit their definitive materials in the Securities and Exchange Commission’s (SEC’s) EDGAR (electronic data gathering, analysis, and retrieval) filing system.

On Friday, August 4, Bloomberg senior ETF analyst Eric Balchunas disclosed on X (formerly Twitter) that Valkyrie filed a form 497 to convert its BTF to a Bitcoin and Ether Futures ETF on October 3, 2023. This means that BTF – which was initially a Bitcoin Futures ETF only – would also include an Ether Futures ETF.

Balchunas tagged the Valkyrie submission as the 14th Ether ETF application so far. He also noted that Valkyrie may be trying to outleap competition, as the firm’s proposed date – October 3rd – is two weeks ahead of other applicants’ scheduled launch. 

Furthermore, Balchunas likened this application to that of the first pot ETF, MJ, in 2017.  At the time, ETF Managers Group (ETFMG) combined a new marijuana ETF with an existing ETF, the Tierra XP Latin America Real Estate ETF (LARE).

Another Bloomberg intelligence analyst James Seyffart called it a “massive” move while admitting that it is still unclear how the ETF would work.

If approved, this would come as another advancement for Valkyrie, especially after the recent positives recorded on its spot Bitcoin ETF application. 

In July, Bitcoinist reported that the United States Securities and Exchange Commission listed the asset management company in the Federal Register as an applicant for a spot Bitcoin ETF alongside seven other firms.

Valkyrie Joins 13 Other Ethereum ETF Filings For SEC Approval

As mentioned earlier, Valkyrie’s latest filing represents the 14th Ether Futures ETF application. More than a dozen applications from major players, like ProShares, VanEck, Grayscale, and Bitwise, have already been submitted to the Securities and Exchange Commission.

ProShares specifically has exhibited great interest in the Ethereum Futures ETF, with four filings awaiting the SEC’s approval. Notably, the company filed for an equal weight Bitcoin & Ethereum ETF in its 4th application.

While there has been rising interest in Ethereum Futures ETF lately, many crypto analysts are not seeming too optimistic about its chances of being approved by the SEC. 

“My base case is that these are withdrawn by the end of next week. These firms probably had these on the shelf ready to go and just needed to re-submit them,” James Seyffart mentioned in one of his posts.

However, he also speculated that the applicants may have received some sort of signal from the SEC, as he believed most firms won’t bother applying if they knew their chances were “zero or near zero”.

ETHUSDT trading at $1,831.44 | Source: daily ETHUSDT chart from TradingView

Featured image from Bernard Marr, chart from TradingView