Valkyrie is launching the second Bitcoin futures exchange-traded fund (ETF) in the U.S., the company announced on Friday.
Valkyrie Bitcoin Strategy Fund, the second BTC futures ETF in the U.S., is going to start trading Friday on the Nasdaq under ticker symbol “BTF.” Valkyrie CEO Leah Wald shares insights into the launch, plus explaining the difference between BTF and its competitors. As well as why is a BTC futures ETF a safer investment than a BTC spot ETF, and what’s driving the current BTC rally?
“This Bitcoin Strategy ETF is a major leap forward for this asset class. It enables investors to participate in the digital asset markets through a regulated, transparent product that trades on a trusted, reliable exchange and can be bought and sold as easily as any other investment currently available. We care about Bitcoin and always will.”
BTF is an actively managed fund that invests in BTC futures and has no direct exposure to bitcoin itself. The fund offers dual protections for investors via the CFTC regulation of the futures markets as well as the protections built into the fund itself as a 1940 Act ETF. BTF only deals in cash-settled, “front month” bitcoin futures contracts when possible, or else the next nearest expiration date.
Tim McCourt, CME Group Global Head of Equity Index commented, “The approval of ETFs based on CME Bitcoin futures is a positive development for the broader bitcoin ecosystem, and a reflection of the strong growth and client demand for exposure to bitcoin via our transparent, deeply liquid and regulated futures contracts. The introduction of funds, like the Valkyrie BTC Strategy ETF, mark an important milestone for crypto derivatives, and will be highly complementary to futures, creating new opportunities for a broad array of institutional and retail investors.”
Valkyrie is the first issuer to garner SEC approval that deals solely in digital asset investing and currently offers six cryptocurrency-specific trusts for investors seeking exposure to certain tokens in addition to BTF.