In this illustration taken on June 16, 2023, a representation of the Ethereum cryptocurrency is placed on the motherboard of a PC. REUTERS/Dado Ruvic/Illustration/File photo Acquire license rights
Sept 28 (Reuters) - Investment manager Valkyrie Funds LLC has begun adding Ethereum futures to its existing Bitcoin futures exchange-traded fund, after getting the green light from the U.S. Securities and Exchange Commission (SEC). , the company said Thursday.
ETF Renamed Valkyrie Bitcoin and Ether Strategy (BTF.O) will launch on Monday, Valkyrie chief investment officer Steven McClurg told Reuters.
It would be the first time that futures based on Ethereum or "ether" contracts would be available to investors through an exchange-traded fund, in a boost for the cryptocurrency market.
The SEC did not respond to calls seeking comment.
Rival asset managers VanEck and ProShares are looking to offer pure ether futures ETFs, in contrast to Valkyrie's hybrid ETF. McClurg said the SEC told VanEck and ProShares they can launch Monday as well.
VanEck said in a statement Thursday that the launch of his fund is "upcoming" and declined to comment further.
A ProShares spokesperson told Reuters that "no one is in a position to launch it before us," but did not provide specific details about the timing.
The SEC's decision to drop long-standing objections to ether futures ETFs is a boost for the crypto industry. which has been putting pressure on the agency to expand the types of crypto ETFs they can offer. Several companies have applied to launch spot bitcoin ETFs.
Media reports that the SEC was close to approving ether futures ETFs appear to have been boosting the price of the token.
Ethereum prices, which have changed little over the past month, are up nearly 6% this week alone, including a 3.3% jump on Thursday.
Steve Sosnick, chief strategist at Interactive Brokers, however, said it's unclear whether the rise was due to early purchases of ether futures by Valkyrie, or other traders buying in anticipation of future trades.
"Either is possible," Sosnick said.
Reporting by Suzanne McGee; Editing by Michelle Price
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