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Neither the ProShares Bitcoin Strategy ETF nor the Valkyrie Bitcoin Strategy ETF will hold actual BTC.
According to Bloomberg ETF analysts, the Valkyrie futures-based Bitcoin ETF will commence trading this week. Earlier yesterday, commentators were predicting a second futures-based Bitcoin exchange-traded fund (ETF) to go live by the end of the week after the launch of ProShares’ Bitcoin Strategy ETF.
After getting certified for listing on the Nasdaq platform last week, Eric Balchunas, an analyst at Bloomberg, projected on October 19 that Valkyrie’s Bitcoin (BTC) futures-based ETF would “likely” launch in the next days.
Fellow Bloomberg analyst James Seyffart, who initially predicted that the Valkyrie Bitcoin Strategy ETF together with ProShares product will both go live on the same day, revealed yesterday that, Bloomberg received a listing action from Valkyrie Funds for their bitcoin futures exchange-traded fund (ETF). Seyffart added that the Valkyrie Bitcoin Strategy ETF might begin trading as early as October 19, under the ticker symbol “BTF.”
However, according to new information from Eric Balchunas, the Valkyrie futures-based Bitcoin ETF could begin trading on October 20 or October 2. The final piece of the puzzle for listing confirmation is a post-effective prospectus filing with the Securities and Exchange Commission (SEC).
A tweet from Balchunas earlier today confirmed the report as he added that ProShares will have the “market to itself” for the time being. “Update: Valkyrie not going live tomorrow. Likely looking to launch Wed or Thu tho, but we’ll see. Anyway, $BITO will have the market to itself tomorrow,” Balchunas tweeted.
Balchunas followed his tweet by stating that Valkyrie likely exploited “its status as a first-time issuer to skip the queue by requesting to become effective.” “Valkyrie could join ProShares and have their bitcoin futures ETF start trading this week, however a couple of days later,” he added.
ProShares announced earlier yesterday that its Bitcoin Strategy ETF would begin trading the following day. The fund, which will trade under the ticker name “BITO,” seeks to provide bitcoin exposure to both institutional and retail investors.
Neither the ProShares Bitcoin Strategy ETF nor the Valkyrie Bitcoin Strategy ETF will hold actual BTC. Both ETFs will instead seek to obtain bitcoin exposure via futures contracts, which will have a huge impact on investors as a true Bitcoin ETF, which would hold actual bitcoin, still seems a far-fetched reality in the United States.
Bloomberg analysts are however encouraging investors to take ownership of their bitcoin exposure by investing in BTC directly. “Investing in any asset through an ETF is the simplest route, as it is more straightforward for people who are familiar with stock market trading. It does, however, provide attack vectors that could and should be avoided,” they added.