In Brief:
- Valkyrie filed an application with the U.S. SEC to launch the leveraged Bitcoin Futures ETF.
- These ETFs would be traded under the ticker BTFX.
- The fund plans to deliver as much as 1.25 times the reference price of Bitcoin.
On Tuesday, Valkyrie filed an application with the U.S. Securities and Exchange Commission to launch the Valkyrie leveraged Bitcoin Futures ETF.
Newsworthingly, this move comes just four days after its “Nasdaq debut”. These ETFs would be traded under the ticker BTFX. The fund plans to earn large benefits by delivering as much as 1.25 times the reference price of Bitcoin.
This ambitious filing could also be assumed as an open dare to the US Securities and Exchange Commission. It would list on Nasdaq and would be able to hold futures, swaps, options, and forwards.
Furthermore, the firm recently got the approval of its Valkyrie Bitcoin Strategy ETF(NASDAQ:BTF), implying that such products are now trading both on Nasdaq and the New York Stock Exchange.
The notice reads that “Shares of the Fund trade on the Exchange at market prices that may be below, at or above the Fund’s net asset value.” And as the norms are, the warning mentions, “The Fund is not suitable for all investors and is designed to be utilized only by sophisticated investors who understand the risks associated with the use of derivatives, are willing to assume a high degree of risk, and intend to actively monitor and manage their investments in the Fund.”
This move didn’t come off as a big surprise as Bloomberg’s analysts Eric Balchunas had already predicted the launch of Valkyrie’s future-based ETF last week.
It must also be taken into account that the launch of Bitcoin ETFs such as the ProShares Bitcoin Strategy ETF (NYSE:BITO) had already paved the way to new leverage and hedging opportunities for both Bitcoin traders and investors
Besides Valkyrie, ETF Provider Direxion has also filed for Short Bitcoin Futures Product. In fact, Grayscale is also expected to follow the suit soon.
