Valkyrie Files for Leveraged Bitcoin Futures ETF

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  • Valkyrie files for a lever­aged bit­coin futures ETF four days after launch­ing its futures only fund
  • The fund will pro­vide 1.25x expo­sure to the bit­coin ref­er­ence rate

Four days after its bit­coin futures exchange-trad­ed fund made its Nas­daq debut, Valkyrie Invest­ments is already after anoth­er bit­coin futures-based fund, this time with lever­aged exposure. 

The invest­ment firm filed the Valkyrie XBTO Lev­ered BTC Futures ETF prospec­tus on Tues­day morn­ing. The fund, which intends to trade under the tick­er BTFX, will pro­vide 1.25x expo­sure to the bit­coin ref­er­ence rate. It will hold futures, swaps, options and forwards. 

“The Fund presents dif­fer­ent risks than oth­er types of funds,” the fil­ing read. “The Fund may not be suit­able for all investors and should be used only by knowl­edge­able investors who under­stand the con­se­quences of seek­ing dai­ly lever­aged (1.25x) invest­ment results, includ­ing the impact of com­pound­ing on Fund performance.” 

Valkyrie hint­ed at future fund launch­es short­ly after BTF, its bit­coin futures ETF which did $10 mil­lion in trades in the first few min­utes of the ses­sion, began trad­ing last Fri­day. BTF was the sec­ond fund of its kind to begin trad­ing. ProShares Bit­coin Strat­e­gy Fund (BITO) launched on Tues­day and raked in $1 bil­lion in assets under man­age­ment in the first two days. 

“I think spot is quite a bit of a ways away, but we do have some cre­ative things that we’re look­ing at doing,” Steven McClurg, chief invest­ment offi­cer at Valkyrie, told Block­works Fri­day, refer­ring to a spot-based ETF. “You’ll prob­a­bly see them filed in Novem­ber and hope­ful­ly launch­ing in the begin­ning of next year.” 

The news comes as VanEck’s futures-based fund launch is delayed yet again. The issuer filed a new date on Tues­day stat­ing that the fil­ing is expect­ed to become effec­tive on Wednes­day, Octo­ber 27, mean­ing the fund may start trad­ing on Thurs­day or Fri­day. VanEck’s man­age­ment fee will be 0.65%, as opposed to Valkyrie and ProShare’s fee of 0.95%. 

“VanEck is excit­ed to offer a long-await­ed bit­coin exchange trad­ed prod­uct to the U.S. mar­ket,” said Ed Lopez, Head of ETF Prod­uct at VanEck. “We were the first asset man­ag­er to file for a bit­coin futures ETF back in 2017, and we are offer­ing what would be most com­pet­i­tive­ly priced ETF in the cat­e­go­ry when we come to market.”

The issuer declined to com­ment on the rea­son for the delayed launch.

  • Casey Wag­n­er

    Block­works

    Reporter

    Casey Wag­n­er is a New York-based busi­ness jour­nal­ist cov­er­ing dig­i­tal assets and macro eco­nom­ics. Pri­or to join­ing Block­works, she report­ed on mar­kets at Bloomberg News. She grad­u­at­ed from the Uni­ver­si­ty of Vir­ginia with a degree in Media Studies.

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