Valkyrie Investments has broadened its cryptocurrency-based financial offerings by launching a second exchange-traded fund (ETF) linked to Bitcoin futures, named the Bitcoin Futures Leveraged Strategy ETF (BTFX), which began trading on the Nasdaq on February 22. This move comes closely on the heels of the asset manager’s January debut of a spot Bitcoin ETF, marking a significant expansion in Valkyrie’s crypto-related investment vehicles.
The newly introduced BTFX aims to provide investors with leveraged exposure to the Bitcoin futures market, specifically promising investment results that are two times the performance of the CME Bitcoin Futures market, with futures being rolled on a scheduled basis. This leveraged approach is designed to amplify the potential gains (and losses) associated with the fluctuations in Bitcoin futures prices, catering to investors seeking higher risk-reward profiles.
This development follows Valkyrie’s previous launch of a Bitcoin futures ETF under the ticker BTFD, a nod to the popular crypto community mantra “buy the fucking dip.” Valkyrie has been at the forefront of integrating cryptocurrency into regulated financial instruments, being among the first to receive approval from the United States Securities and Exchange Commission (SEC) to list and trade shares of a spot Bitcoin ETF in January.
Valkyrie CEO Leah Wald commented on the launch, highlighting the growing interest in Bitcoin and the broader cryptocurrency market among traders and investors. Wald pointed out that financial instruments like ETFs offer a way for individuals to engage with the cryptocurrency space within a regulated framework, thereby potentially broadening the appeal and accessibility of digital assets.
Prior to the SEC’s approval of spot Bitcoin ETFs in January, many asset managers, including Valkyrie and ProShares, had turned to Bitcoin futures ETFs as a means to provide investors with exposure to cryptocurrencies. This strategy was seen as a way to circumvent the regulatory hurdles associated with spot cryptocurrency ETFs.
The SEC’s stance on cryptocurrency ETFs has been one of caution, with the regulator historically pushing back deadlines and delaying decisions on such financial products. However, the approval of Valkyrie’s spot Bitcoin ETF and now its leveraged Bitcoin futures ETF signals a potentially more open regulatory approach to cryptocurrency investment vehicles. The crypto community is closely watching the SEC for its forthcoming decision on a spot Ether ETF, with a final deadline set for May 23 for a decision on an application by asset manager VanEck.
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