Valkyrie files paperwork with SEC for leveraged bitcoin futures ETF

Valkyrie Investments, a company that describes itself as a specialized alternative asset management firm “at the intersection of traditional finance and the emerging cryptocurrency sector” has filed with the Securities and Exchange Commission (SEC) for a leveraged bitcoin exchange-traded fund (ETF).

Why should we care?
Valkyrie’s filing with the SEC for the leveraged bitcoin futures ETF comes a week after it launched a bitcoin futures ETF. Meanwhile, ProShares launched a bitcoin futures ETF earlier this month, and VanEck appears ready to launch a bitcoin futures ETF of its own. With the growth of various kinds of bitcoin ETFs on the market, it’s unclear what the demand for these products will be over the long term. The Valkyrie bitcoin ETF (BTFX) will trade on Nasdaq and will have capabilities to hold derivatives such as futures, swaps, options and forwards. “The Fund presents different risks than other types of funds. The Fund may not be suitable for all investors and should be used only by knowledgeable investors who understand the consequences of seeking daily leveraged (1.25x) investment results, including the impact of compounding on Fund performance,” Valkyrie said in its filing.