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Valkyrie has announced the launch of its Bitcoin Strategy ETF (BTF), becoming the second of its type in the US. The Bitcoin futures ETF began trading on the 22nd of October after receiving approval from the US Securities and Exchange Commission (SEC). The new ETF is focused on tracking the value of Chicago Mercantile Exchange (CME) Bitcoin […]
Valkyrie has announced the launch of its Bitcoin Strategy ETF (BTF), becoming the second of its type in the US. The Bitcoin futures ETF began trading on the 22nd of October after receiving approval from the US Securities and Exchange Commission (SEC). The new ETF is focused on tracking the value of Chicago Mercantile Exchange (CME) Bitcoin futures. At the time of launch, the futures linked ETF opened trading at $25.52 per share.
Valkyrie Bitcoin Strategy ETF Launches on Nasdaq
Valkyrie Bitcoin Strategy ETF commenced trading on the Nasdaq under the ticker BTF. Ahead of the newly-launched BTF, ProShares Bitcoin Strategy ETF made its debut on the New York Stock Exchange (NYSE) on the 19th of October. In less than a week after launch, ProShares Bitcoin Strategy ETF has amassed over $1 billion in assets under management (AUM).
Bitcoin and other digital assets are growing in popularity over time, and more investors are increasingly adding the assets to their investment strategies. Already, about 21 million Americans own at least one kind of cryptocurrency. Interestingly, a recent survey showed that the number will grow to 51 million by 2022. Similarly, Bitcoin futures are becoming a popular investment vehicle for both institutional and retail investors.
The chief executive officer at Valkyrie, Leah Wald, commented on the launch. He referred to the Bitcoin Strategy ETF as a “major leap forward for this asset class.” The CEO added:
“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.”
Furthermore, Bitcoin Strategy ETFs give investors direct exposure to crypto futures without the challenges of direct investment in crypto assets. According to CME Group Global Head of Equity Index and Alternative Investment Products, Tim McCourt, the approval of ETFs on CME Bitcoin futures shows increased demand for Bitcoin exposure. He added that the launch of ETFs like Valkyrie Bitcoin Strategy ETF is a significant event for crypto derivatives. McCourt also said that the new Bitcoin ETF by Valkyrie will compliments futures as it provides fresh opportunities for all kinds of investors.
BTF Sheds 3% in an Hour
Shortly after Valkyrie’s Bitcoin Strategy ETF opened at $25.52 per share, the exchange-traded fund dropped 3.3% within the first hour. Currently, the Bitcoin futures-linked ETF is at an after-hours trading price of $24.75. The ETF declined as Bitcoin also fell from its all-time high of nearly $67k earlier in the week. At press time, Bitcoin is at $60,629. The cryptocurrency has lost over 3% in the last 24 hours and shed nearly 17% in its 24-hour trading volume.
The SEC has received submissions of several ETF applications, and the crypto community has been waiting for approvals. Following the launch of the first and second Bitcoin futures-linked ETFs in the US, there is a third one coming. The VanEck Bitcoin Strategy ETF got the greenlight from the regulator and will trade under the ticker “XBTF.”