Valkyrie Investments introduces BTFX, a 2x leveraged Bitcoin futures ETF aimed at doubling the daily performance of the CME Bitcoin Futures index.
According to a press release, BTFX seeks to achieve this objective by investing in Bitcoin futures contracts rather than directly in Bitcoin itself.
Valkyrie Co-Founder Steven McClurg indicated that BTFX is tailored for institutional investors and hedge funds, emphasizing its non-direct investment strategy in Bitcoin (BTC).
“The fund does not invest directly in Bitcoin. Rather, the fund seeks to benefit from increases in the price of Bitcoin Futures Contracts for a single day,” a filing with the Securities and Exchange Commission (SEC) stated.
In discussions about regulatory approval, McClurg revealed that the SEC initially exhibited hesitancy towards BTFX. However, the recent green light for spot Bitcoin ETF funds by the SEC, including Valkyrie’s, has facilitated the approval process for BTFX.
“A leveraged Bitcoin ETF is easier for regulators to deal with than even Bitcoin spot because it’s all futures-based,” McClurg said.
Valkyrie has been developing BTFX for two years following its Bitcoin Futures ETF launch in 2021. Despite other issuers like BlackRock, Fidelity, and Franklin Templeton exploring spot Ether ETFs, Valkyrie remains committed to the Bitcoin ecosystem.
Valkyrie CEO Leah Wald expressed the firm’s dedication to providing innovative financial instruments for Bitcoin exposure, emphasizing the importance of catering to the evolving interests of traders and investors in the digital asset space.
