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Valkyrie files for a Bitcoin (BTC) futures ETF

Thu 12 Aug 2021 ▪ 17h53 ▪ 3 min read — by Katie Donaldson

The crypto trading firm Valkyrie Investments filed with the Securities and Exchange Commission (SEC) on Wednesday, 11th August, for a crypto-specific exchange-traded fund (ETF).

SEC’s position

It’s the company’s second attempt at creating an ETF, a basket of securities that tracks an underlying index. American investors have been talking about a Bitcoin (BTC) ETF for ages now because such a fund wouldn’t require creating a wallet, registering on crypto exchanges or worrying about security and anonymity. 

Spring of 2021 brought some hope to crypto traders’ hearts in the form of a new SEC Chief. Gary Gensler is seen as the crypto community’s friend, a complete opposite of his predecessor, Jay Clanton. Despite the rumors that Gensler might be not that crypto-leaning, he is expected to approve a Bitcoin-backed ETF.

Valkyrie ETF Trust II

According to the filing, the Valkyrie ETF Trust II “will not directly invest in Bitcoin, instead seeking to purchase BTC futures contracts traded on the Chicago Mercantile Exchange (CME)”. The value of futures will be determined by reference to the CME CF Bitcoin Reference Rate, which provides an indication of the price of BTC across certain crypto exchanges. The investment firm seeks to invest in cash-settled Bitcoin futures.

The fund will invest indirectly, via a wholly-owned subsidiary of the ETF organised under the laws of the Cayman Islands, in standardised, cash-settled futures contracts on BTC. 

Valkyrie raised $10 million in a Series A capital round to drive its ETF ambitions. The Nashville-based company is planning to further develop by expanding its team and entering the Asian market. 

Valkyrie Investments is waiting for Securities and Exchange Comission’s decision on a new Bitcoin ETF. The new fund is supposed to provide additional opportunities to its investors. However, SEC Chief’s position isn’t clear yet.

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Katie Donaldson avatar
Katie Donaldson

I went full time crypto back in June 2018, and have never looked back. I want to help persuade as many people as possible to come and build the decentralised future! Let’s go!

DISCLAIMER

The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.

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