Bitcoin and crypto financial services firm Valkyrie Funds will become the second firm to launch a Bitcoin futures-based ETF in the United States. The fund, BTF, aims to track the value of Chicago Mercantile Exchange (CME) Bitcoin futures.
Leah Wald, CEO at Valkyrie commented, “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.”
During a Friday morning interview with CoinDesk, Wald commented on what differentiates Valkyrie from ProShares, equating her Bitcoin and crypto-based fund to “subject matter expertise” and that of ProShares to “a monolith that cares more about launching their next fund.”
“We care about Bitcoin and always will,” Leah said.
Bitcoin futures are becoming an increasingly popular investment vehicle for institutions and individuals who cannot or will not custody Bitcoin themselves. The ProShares Bitcoin futures ETF, the first Bitcoin ETF in the U.S., hit the market under the ticker $BITO on October 19. The new ETF hit $1 billion in assets under management in just two days, a record for the ETF industry and a testament to the overwhelming demand for Bitcoin investment vehicles in the U.S.
If the success of the Proshares Bitcoin ETF launch and Bitcoin’s recent breakthrough to new all-time highs around $67,000 are any indication, Valkyrie’s new Bitcoin Strategy ETF is sure to enjoy demand on Friday.
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 Bitcoin 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.”
The futures contracts held by the Valkyrie strategy ETF are cash settled. Many are eagerly awaiting the approval of a Bitcoin spot-based ETF, which is considered to be a safer investment vehicle that can more closely track the price of Bitcoin. In anycase, a futures ETF is a step in the right direction in terms of educating and exposing traditional investors about Bitcoin and spreading Bitcoin education and adoption.
Leah concluded, “We just hit all-time highs. We think that all signs are pointing higher.”
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Author: Alex McShane