Valkyrie recently introduced the 2x leveraged futures-based Exchange-Traded Fund (ETF). Bitcoin.
The new fund, known as BTFX, will compete with Volatility Shares’ 2x Bitcoin Strategic Exchange-Traded Fund, known as BITX. Let’s see all the details below.
Valkyrie introduces an innovative Bitcoin futures traded fund (ETF).
As anticipated, last Thursday, Valkyrie introduced a new leveraged product based on Bitcoin.
Specifically, aiming to deliver double the daily performance of an index of futures su Bitcointhus consolidating its presence in Bitcoin-related leveraged products.
The fund, called Valkyrie Bitcoin Futures Leveraged Strategy ETF (BTFX), is a leveraged Bitcoin futures-based exchange-traded fund (ETF) designed to generate a daily performance equal to double the index.
The latter is designed to evaluate the performance of the CME’s Bitcoin futures market, with a scheduled roll-over, as specified by Valkyrie in a release.
The introduction of BTFX comes a month after the SEC approved a number of spot Bitcoin ETFs, including Valkyrie, BlackRock e Grayscale.
A significant step after years of efforts by the cryptocurrency industry to gain approval for such instruments.
Leah Wald, CEO of Valkyrie, said the following in this regard:
“The launch of BTFX highlights our commitment to providing innovative options for investors to access Bitcoin and the digital asset ecosystem. With Bitcoin currently in the spotlight, traders and investors are looking for financial instruments to participate in this space, and as a leader in digital asset-focused ETFs, we want to ensure an excellent fund.”
The new fund enters into competition with the Volatility Shares 2x Bitcoin Strategy ETFknown as BITX, Bloomberg senior ETF analyst Eric Balchunas said in a post on X on Thursday.
Balchunas noted:
“Valkyrie today launches a 2x Bitcoin Futures ETF $BTFX that will compete with $BITX which already has $350 million. That said, there are about 15 leveraged spot BTC ETFs in the process of registering, one or two of which will likely take off and make it harder for futures ones.”
Valkyrie: performance and competitiveness
Valkyrie co-founder, Steven McClurg, recently held discussions with Blockworks regarding their Bitcoin ETF, which launched in collaboration with BlackRock, Fidelity and other partners in January.
Notably, McClurg shares that their ETF assets under management have doubled in the last two weeks, highlighting a significant increase of 100%.
This result also generated attention for other products offered by Valkyrie, such as those associated with Bitcoin miners.
When addressing the topic of tariffs, McClurg highlights Valkyrie’s decision to lower your costs, trying to maintain a competitive positioning within the Bitcoin ETF market.
Additionally, McClurg explains that Valkyrie took this move into consideration due to growing competition. He therefore highlights the importance of maintaining fees between 20 and 35 basis points, avoiding becoming a “fee outlier”.
Cybersecurity is a crucial aspect for Valkyrie, and McClurg reveals that the company is the only one to announce a secondary partnership for the custody of Bitcoin for the ETF.
Explain that Bitcoin custody requires a multiple approach and that it is essential not to keep all your coins in one wallet. McClurg emphasizes their focus on security, considering it a priority when it comes to managing Bitcoin.
Source: https://cryptonomist.ch/2024/02/22/valkyire-nuovo-etf-futures-bitcoin-leva-2x/
