Valkyrie Funds’ Bitcoin Futures ETF ($BTF) went live on Nasdaq earlier today, becoming the second Bitcoin Strategic ETF to get SEC’s approval after ProShares launched its $BITO made its debut on New York Stock Exchange (NYSE) 3 days back. Valkyrie’s $BTF would exclusively track the value of the Chicago Mercantile Exchange (CME) Bitcoin futures market.
“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 and client demand for exposure to bitcoin via our transparent, deeply liquid and regulated futures contracts,” said Tim McCourt, CME Group Global Head of Equity Index and Alternative Investment Products. “The introduction of funds, like the Valkyrie Bitcoin Strategy ETF, mark an important milestone for crypto derivatives, and will be highly complementary to futures, creating new opportunities for a broad array of institutional and retail investors.”
The US SEC chief Gary Gensler last month in an interview has claimed that a Futures based ETF would have a better chance at approval than spot ones. This led to several investment funds retracting their spot ETFs and consequently filing a strategic one.
Eric Balchunas, the Bloomberg ETF analyst said Proshares definitely has an upper hand in the game due to early approval but $BTF can definitely have a chance.
“ProShares has upper hand but know they vulnerable to this argument, which is prob why they raised cr fee yest (to slow inflows so they won’t hit futures limit) but then dropped it back down today. They are in a balancing act here, trying to keep momo but w/ out getting too big.”
Just a 3-day head start has created a powerful liquidity beast in $BITO. Normally odds very low in case like this, but… Valkyrie can make unique case here that they will have better corr/tracking to spot bc they only front month. Traders may respond to that. We’ll see..
— Eric Balchunas (@EricBalchunas) October 22, 2021
Bitcoin Futures ETF To Boost $BTC Price?
The first Bitcoin Futures ETF by ProShares created several records on debut becoming the second largest traded volume on debut and fastest to reach $1 billion in assets. $BITO gathered over $1 billion in assets in just two days, the previous record was held by gold ETF launched in 2003.