LATEST ON VALKYRIE BITCOIN ETF LAUNCH
VALKYRIE BITCOIN ETF LAUNCH: Ranking first in history, Pro-shares launched the first U.S Bitcoin ETF and ranked millions of dollars by investors. However, following swiftly after the events of the pro-shares launch, another rival hits the crypto world; Valkyrie became the second U.S Bitcoin exchange-traded fund trading with the ticker BTF.
Valkyrie is a service and research company that was founded in Austin, Texas, in 2017. Their untapped success among dozens of firms that filed for ETFs tracking bitcoin and were not approved by the SEC is astonishing. A quick overview of the firm Valkyrie;
Valkyrie Funds is a firm that specializes in bridging the gap between the traditional way of finance and the uprising cryptocurrency sector. Valkyrie has smaller sectors that carry out research and other related services. Headquartered in Nashville with offices across the United States,
Out of this prestige, they launched an ETF strategy that gained up to $10millon in five minutes of trading.
The CEO Leah Wald said, “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.”
Bitcoin futures are monitored in the United States on the CME (Chicago market exchange) and are becoming a commonly used investment vehicle for individuals. In addition, BTF provides a community to investors, advisors, and so on, which bypasses the ups and downs of investing directly in cryptocurrency assets.
The CME group global head of equity index Tim McCourt has said in an interview that “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. It also shows client demand for exposure to bitcoin via our transparent, deeply liquid and regulated futures contracts, thereby creating new opportunities for a broad array of institutional and retail investors.”
The Valkyrie Bitcoin Strategy ETF (BTF) is tasked with providing investors with capital appreciation and growth. However, the crypto world can be a very volatile one, and we can attest for sure any ETF strategy.
Valkyrie BTF aims to solely track the value of Chicago Mercantile Exchange (CME) Bitcoin futures. This refers to agreements to buy or sell an asset in the future at a specific price. The fund’s goal, which does not invest directly in Bitcoin, is to track the value of these products in a liquid basket of securities. Reports heard is that Valkyrie is making its way to the NASDAQ stock exchange. However, this cannot be verified for sure as they have to be approved first, and also looking at the fact that it took years for SEC to allow a Bitcoin ETF of any kind to trade.
Furthermore, only days after their launch, Valkyrie crypto investment firm filled to offer a 1.25x leveraged bitcoin futures ETF to U.S investors. BTFX would provide 1.25 x exposures to the bitcoin reference rate, according to an analyst’s tweet, Eric Balchunas from Bloomberg Intelligence ETF.
THE MARKET RISK FOR VALKYRIE
Historically the values and prices of Bitcoin and its futures have always been highly volatile. This volatility could make the value of this cryptocurrency decline significantly and without warning, including to zero. Therefore, one has to be ready and prepared to accept sudden changes in the value. Unfortunately, this type of readiness comes with the risk of investing.
THE MARKET COMPETITION
The bar was high for Valkyrie after the Tuesday debut of the Pro-Shares Bitcoin Strategy ETF (ticker BITO), which ranked as the second-busiest launch ever. “The market can handle a lot of different issuers’ products and we very much welcome the competition. Obviously, we’re coming in second to market here but we’re very excited,” Leah Wald, Valkyrie Funds CEO, said in an interview, adding that “we wish our competition luck.”
On another note, more firms are coming into the market: VanEck’s pending Bitcoin Strategy ETF (ticker XBTF) will soon invade the market. The firm, which was meant to launch last week, has been delayed due to two ETF-related firms’ recent launches. They are also standing unique by reducing their price points. While the two prior firms carry a 95-basis point, VanEck carries a 65 basis point which is 30 basis points cheaper than the Pro-Shares and Valkyrie funds. Some market watchers are optimistic about this proposed launch based on VanEck’s reputation and their price point.
As mentioned earlier, the recent approval of some firms regarding ETFs strategy does not necessarily pave a path for other investments and firms to be approved by the SEC.
To conclude, Bitcoin is being approved and adopted by more firms, even if it’s just limited for now. This suggests that investors are seeking a more secure way to direct their funds. If not delayed by the SEC, we hope to see more ETFs spot Bitcoin in the market soon.