Valkyrie Introduces 2X Leveraged Bitcoin Futures Fund

Valkyrie, an asset management company, has released a second exchange-traded fund (ETF) connected to Bitcoin futures. This comes after the company listed a spot BTC ETF in January. Valkyrie’s Bitcoin Futures Leveraged Strategy ETF, which offers investment results twice the performance of the CME Bitcoin Futures market, is now available for trading on the Nasdaq under the ticker symbol BTFX. In a separate development, Valkyrie introduced an investment product linked to Bitcoin futures on the Nasdaq, known as BTFD, which is a play on the phrase “buy the fucking dip” frequently used by cryptocurrency enthusiasts.

Valkyrie gained approval from the United States Securities and Exchange Commission (SEC) in January to list and trade shares of a spot Bitcoin ETF. The company’s CEO, Leah Wald, stated that due to Bitcoin’s popularity, traders and investors are exploring financial instruments to gain exposure to the cryptocurrency market. Prior to the SEC’s approval of spot BTC ETFs on January 10, asset managers relied on Bitcoin futures-based vehicles to provide investors with cryptocurrency exposure. Valkyrie, along with ProShares, was among the first firms to introduce BTC futures ETFs in the U.S. in October 2021.

While the SEC approved Bitcoin investment products, it has yet to make decisions concerning a spot Ether ETF. The regulatory body has consistently extended deadlines and delayed their decision on approving or disapproving a spot Ether ETF, similar to its actions prior to approving a Bitcoin investment vehicle. Experts predict that the SEC will announce its decision on a spot ETH ETF from asset manager VanEck by May 23, which is the final deadline.

Valkyrie’s latest ETF enables investors to trade Bitcoin futures, allowing them to benefit from the price movement of Bitcoin without directly owning the cryptocurrency. By offering leveraged exposure to the CME Bitcoin Futures market, which operates on a predetermined basis, the ETF aims to attract investors seeking amplified returns. This product caters to individuals who are interested in gaining exposure to Bitcoin but are hesitant to directly invest in the volatile cryptocurrency.

As the popularity of cryptocurrencies continues to surge, asset management companies are developing various investment products to meet the demand. These financial instruments provide individuals with alternative ways to participate in the crypto market, diversifying their portfolios and potentially generating higher returns. With ETFs like Valkyrie’s Bitcoin Futures Leveraged Strategy ETF, investors can now access leveraged exposure to Bitcoin futures via an easily tradable security on the Nasdaq.

Valkyrie has launched a leveraged Bitcoin futures ETF, expanding its range of cryptocurrency investment products. By offering leverage and access to the CME Bitcoin Futures market, the ETF aims to attract investors seeking amplified returns without directly owning Bitcoin. The SEC’s approval of spot BTC ETFs in January has fueled interest in these investment vehicles, with Valkyrie being among the first to list and trade shares of a spot Bitcoin ETF. While the SEC has yet to approve a spot Ether ETF, experts predict a decision will be made by May 23. The introduction of Valkyrie’s Bitcoin Futures Leveraged ETF provides investors with another option to gain exposure to the crypto market and potentially capitalize on Bitcoin’s price movements.