Valkyrie applies for leveraged Bitcoin futures ETF
After becoming the second company to launch its Bitcoin Futures ETF on the NYSE, US asset management company Valkyrie wants to launch another one.
Valkyrie has now filed an application for a leveraged Bitcoin futures ETF with the SEC on the 26th. With its new offering, the company wants to provide 1.25x exposure to the bitcoin reference rate.
The ETF will also hold options, swaps, forward contracts, and Bitcoin futures.
Valkyrie’s Bitcoin futures ETF under the ticker “BTF,” went public on NASDAQ last week. Apart from Valkyrie’s, the SEC has approved two more Bitcoin futures ETF; ProShares Bitcoin Strategy Fund (BITO), which raked in $1 billion in AUM in the first two days, and VanEck’s Bitcoin futures ETF, which delayed its launch to 27th or 28th October.
Hours after Valkyrie applied for a leveraged ETF, ETF manager Direxion submitted an application for an inverse Bitcoin futures ETF.
INVERSE BITCOIN ETF: Direxion just filed for a -1x Bitcoin Futures ETF, which will seek to be short front month bitcoin futures, basically the $XIV of $BITO.. This comes mere hours after the first levered bitcoin ETF was filed. pic.twitter.com/bN2m7pIZw5
— Eric Balchunas (@EricBalchunas) October 26, 2021
This ETF seeks to maintain a short position and will offer -1x leverage. It plans to list on the Arca New York Stock Exchange and invest in other bitcoin futures ETFs or money market funds, deposit accounts, or short-term debt instruments.
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OhNoCryptocurrency via https://www.ohnocrypto.com/ @Gauri Bhatia, @Khareem Sudlow
