Two Bitcoin Futures ETF in One Week
According to Bloomberg on Wednesday (October 20, 2021), a spokesperson for Valkyrie revealed that the Valkyrie Bitcoin Strategy fund will start trading on Friday, October 22. Unlike the ProShares product, Valkyrie’s fund will trade on the Nasdaq exchange.
In a tweet by Eric Balchunas, Bloomberg’s senior ETF analyst, who earlier mentioned that the fund was launching on Thursday, the company was planning to trade under the ticker “BTFD” which, in the crypto community means “buy the f**king dip”. However, Balchunas said the ticker for the bitcoin-linked ETF was changed back to the original BTF, maybe because the U.S. Securities and Exchange Commission (SEC) “probably wasn’t a fan” of the former.
Meanwhile, the latest development comes after the ProShares Bitcoin Strategy ETF went live on the New York Stock Exchange (NYSE) under the ticker BITO on Tuesday, October 19. The Bitcoin futures fund was earlier approved by the SEC on Friday, October 15, becoming the first ever bitcoin-linked ETF in the US.
Following the launch, the ProShares Bitcoin futures fund has recorded an impressive performance within a short period. Data from Bloomberg showed that the ProShares product raked in $1.1 billion in assets under management two days after its debut trading, after a trading volume of morethat $1.2 billion, making it the fastest that an ETF attained the $1 billion milestone.
VanEck Next in Line to Launch Bitcoin Futures ETF
Another Bitcoin futures ETF is also set to commence trading in the US next week. According to the global investment manager, the company will launch its fund after Saturday, October 23. Like the ProShares product, VanEck’s Bitcoin futures ETF will trade on the NYSE. An excerpt from a prospectus describing the fund, says:
The Fund is an actively managed exchange-traded fund (“EFT”) that seeks to achieve its investment objective by investing, under normal circumstances, in standardized, cash-settled bitcoin futures contracts (“Bitcoin Futures”) traded on commodity exchanges registered with the Commodity Futures Trading Commission (“CFTC”), such as the Chicago Mercantile Exchange (the “CME”).
Meanwhile, VanEck is no stranger to Bitcoin ETFs, as the company filed several applications in the past and faced delays by the SEC. In August 2021, the firm filed for a Bitcoin Strategy ETF with the U.S. securities regulator, consisting of bitcoin futures and other BTC funds. If indeed VanEck’s product starts trading next week, it would be the third Bitcoin Futures ETF to debut in the United States.
There were recent reports that Grayscale, the world’s largest cryptocurrency asset manager, was planning to apply with the SEC to convert its BTC trust, which is the biggest bitcoin fund in the world, to a spot ETF.
However, while more companies are trying to launch a Bitcoin Futures ETF, investment management firm, Invesco, is reportedly no longer interested in releasing such a product. According to a Bloomberg report, a spokesperson for Invesco said that the company wants to instead pursue a physically-backed Bitcoin ETF.