Valkyrie Investments Introduces BTFX, a 2x Leveraged Bitcoin Futures ETF
Valkyrie Investments has launched BTFX, a 2x leveraged Bitcoin futures ETF designed to double the daily performance of the CME Bitcoin Futures index. Unlike other funds, BTFX achieves its objective by investing in Bitcoin futures contracts, rather than directly in Bitcoin itself.
The aim of the fund is to benefit from increases in the price of Bitcoin Futures Contracts for a single day. Steven McClurg, Co-Founder of Valkyrie, stated that BTFX is specifically tailored for institutional investors and hedge funds, highlighting the fund’s non-direct investment strategy in Bitcoin.
Initially, the Securities and Exchange Commission (SEC) expressed hesitancy towards BTFX. However, the recent regulatory approval for spot Bitcoin ETF funds has made the approval process for BTFX smoother. McClurg explained, “A leveraged Bitcoin ETF is easier for regulators to deal with than even Bitcoin spot because it’s all futures-based.”
Valkyrie has been working on developing BTFX for two years after the launch of its Bitcoin Futures ETF in 2021. Despite other major players like BlackRock, Fidelity, and Franklin Templeton exploring spot Ether ETFs, Valkyrie remains committed to the Bitcoin ecosystem.
Leah Wald, CEO of Valkyrie, emphasized the firm’s dedication to offering innovative financial instruments for Bitcoin exposure. She highlighted the importance of catering to the evolving interests of traders and investors in the digital asset space.
With BTFX, Valkyrie aims to provide institutional investors and hedge funds with an efficient and regulated way to gain exposure to Bitcoin’s potential growth, utilizing the benefits of leveraged futures contracts.
Analyst comment
Positive news.
As an analyst, the introduction of BTFX by Valkyrie Investments will likely lead to increased participation from institutional investors and hedge funds seeking exposure to Bitcoin’s potential growth. The fund’s regulatory approval and non-direct investment strategy make it an attractive option for these investors, contributing to the overall growth and development of the Bitcoin market.
