Launch of the second Bitcoin-linked ETF, aimed at providing “exposure to a wider audience of investors”

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Let’s go for Bitcoin Exchange Traded Fund (ETF) futures. Following the successful debut of ProShares Bitcoin Strategy ETF earlier this week, the Valkyrie Bitcoin Strategy fund began trading on the Nasdaq exchange today under the symbol “BTF”.

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ProShares’ ETF closed on Wednesday with $ 1.1 billion under management after trading volume exceeded $ 1.2 billion, according to a press release. The launch on Tuesday met demand almost off the charts, ranking as the second most-traded premier ETF on record, Bloomberg adds. It also sent the price of Bitcoin to a new high of over $ 66,000. This morning, Bitcoin was at $ 62,000, according to CoinMarketCap.

The Valkyrie ETF aims to track only the value of Chicago Mercantile Exchange (CME) Bitcoin futures, according to Valkyrie. Bitcoin futures, which are agreements to buy or sell an asset at a specific price, are fully regulated in the United States on the CME. The objective of the fund – which does not invest directly in Bitcoin – is to track the value of these products in a basket of liquid securities. “In doing so, BTF provides exposure to a wider audience of investors, advisers and more, without the pitfalls and obstacles typically associated with investing directly in crypto assets,” the company said in a statement.

“The price of bitcoin futures is expected to differ from the current price of bitcoin. As a result, the performance of the Fund should be expected to differ from the performance of the bitcoin spot price, ”the statement continued.

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Unlike the Bitcoin ETF applications that the SEC rejected, the ProShares and the fund are futures-based and have been filed under mutual fund rules which, according to SEC Chairman Gary Gensler, offer ” significant investor protection ”. This comes eight years after the first Bitcoin ETF application was filed and follows the Securities and Exchange Commission (SEC) blocking these approvals. While far from a “pure” Bitcoin-only ETF, the new ETF gives traders and investors hope that it could pave the way for global approval.

The story continues

Stephen Stonberg, CEO of Bittrex Global, told GOBankingRates that Valkyrie Bitcoin ETF’s green light from regulators is another monumental moment for the crypto industry. The listing of the ProShares Bitcoin Strategy ETF on the NYSE and the upcoming listing of the Valkyrie Bitcoin ETF will lead to wider acceptance of crypto, more rigorous adoption among retail and institutional investors, and a subtle harmony between the traditional finance and the digital asset sector, ”he said. “These lists are not the last stocks we can expect from traditional finance, but the first ones. If anything, this week in crypto foreshadows what’s yet to come.

VanEck is also expected to start trading next week with its own Bitcoin-futures ETF. The company updated its SEC file, saying its VanEck Bitcoin Strategy ETF will be available “as soon as possible” after Saturday, October 23, according to the file.

Elliot Johnson, CIO and COO of Evolve ETFs, launched one of the world’s first Bitcoin ETFs, the world’s first Ether ETF, and Canada’s first multi-crypto ETF, traded on the Toronto Stock Exchange. He told GOBankingRates that “while there is generally a strong first-mover advantage, investor interest in crypto is still very early on and we expect there to be many successful issuers. That said, investors strongly prefer physical crypto ETFs over futures when they have access to them. These new ETFs in the US are just one step on the road to wider adoption.

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Indeed, in another indicator that things could go faster, Grayscale Investments announced that it has filed with the SEC to convert its Bitcoin Trust into a Bitcoin Spot ETF “on the heels of SEC approval of ‘a Bitcoin Futures ETF,’ according to a previous announcement. this week. “As we apply to convert GBTC to ETF, the next natural step in the evolution of the product, we recognize that this is an important time for our investors, our industry partners and all. those who realize the potential of digital currencies to transform our future, “Michael Sonnenshein, CEO of Grayscale Investments, said in the announcement.

Mike Creadon, president of DeFi Devs, leading community developers of Accumulate Protocol, told GOBankingRates that the history of the Valkyrie BTC ETF is a turning point in financial history. “Finally, the country’s most important regulator recognizes what the ‘hodlers’ have been saying from the start: Bitcoin is a real asset that’s here to stay,” he said.

“Just yesterday, bond giant PIMCO with $ 2.2 trillion in assets said it was heading into crypto. It’s a natural progression, because like any other financial services company, you won’t be in business in 10 years if you don’t have a digital asset strategy or decentralized finance (DeFi) exposure ”, Creadon continued. “The story of the Valkyrie BTC ETF is a demonstration that asset managers need net exposure to this booming asset class. There is no doubt that the biggest financial institutions in the world have probably sat down with the regulators and said, “You have to give us access. We can no longer sit on the sidelines. History is changing before our eyes.

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Last updated: October 22, 2021

This article originally appeared on GOBankingRates.com: Second Bitcoin Linked ETF Launched, Aimed to Provide “Exposure to Wider Investor Audience”

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