By
Steve Muchoki
May 9th, 2024
The news of the new Valkyrie ETF caused a spike in Ether price.
Asset manager Valkyrie has received approval to convert its Bitcoin futures exchange-traded fund (ETF) to a two two-for-one investment vehicle by combining Bitcoin and Ether futures contracts into one contract. The firm has already started buying Ether futures contracts.
In a statement to CoinDesk, a company spokesperson wrote:
“Today, the Valkyrie Bitcoin Strategy ETF (Nasdaq: $BTF) began adding exposure to Ether futures contracts, making it the first US ETF to provide exposure to Ether and Bitcoin futures contracts under one wrapper.”
Valkyrie Eclipses Grayscale, VanEck in ETH Futures ETF Race
True to analysts’ predictions, was the first among other firms to receive the greenlight for the ETH futures ETF. This, according to the spokesperson, is because it “supplemented its prospectus and updated risk disclosures related to Ether futures,” said the spokesperson.
Starting October 3, the ETF will be renamed Valkyrie Bitcoin and Ether Strategy ETF and will maintain the BTF ticker.
Valkyrie becomes the first out of nine issuers that filed for ETH futures ETF, including Bitwise, Gray-scale and VanEck.
Meanwhile VanEck announced on Thursday that it was preparing to launch its ETH Futures ETF called the VanEck Ethereum Strategy ETF (EFUT). The firm stated that the fund would invest in standardized, cash-settled ETH Futures contracts and will be listed on CBOE.
VanEck ETH Futures ETF News Wipes Out $11M in ETH Shorts
According to a report by market intelligence platform Santiment, the news of the new Valkyrie ETF caused a spike in Ether price.
📈 #Valkyrie made major headlines after getting approval to be the first to offer #Ether futures in its existing #ETF. This news undoubtedly increased exposure and boosted $ETH's price to $1,665 toward the end of Thursday's trading. https://t.co/hQlCLiXfvH pic.twitter.com/hmnEqxgRUw
— Santiment (@santimentfeed) September 29, 2023
The price rose by up to 5% while trading volumes almost touched 25%. The increase in ETH’s price on Thursday wiped out $11 million worth of ETH shorts over a 24-hour period.
On major exchanges OKX and Binance, ETH shorts accounted for 77% and 81%, respectively, of all liquidations. OKX reports $3.52 million in short liquidations while Binance reports $3.04 million.