Valkyrie Investments has applied to launch a bitcoin futures ETF

Valkyrie Investments has applied to launch a bitcoin futures ETF

Digital asset manager Valkyrie Investments has submitted an application to the US Securities and Exchange Commission (SEC) to launch an actively managed ETF linked to bitcoin futures. The structure is not designed for direct investment in digital gold.

According to the application, the Valkyrie Bitcoin Strategy ETF will make all investments through a subsidiary. The fund targets futures contracts that are traded on CFTC-registered commodity exchanges.

Currently, there is only one marketplace, the CME, that lists such instruments. It is expected that the value of the futures will be calculated based on the CME CF Bitcoin Reference Rate index.

Valkyrie Investments' application is filed under the provisions of the Investment Company Act of 1940. Earlier, SEC chief Gary Gensler had said that the act provided stronger investor protections. He stressed that a fund meeting the regulator's requirements could be approved.

Speaking to CoinDesk, chief investment officer Stephen McClurg said:

"I think [Gensler's] comment makes it clear that a purely spot bitcoin ETF will not get approval any time soon, while futures products could be considered."

ETF analyst at Bloomberg James Seyffarth said there are 25 applications pending with the SEC to launch funds based on cryptocurrency or relevant derivatives. Ten applications relate to derivatives-based structures.

ETF analyst at Bloomberg James Seyffarth said there are 25 applications pending with the SEC to launch funds based on cryptocurrency or relevant derivatives. Ten applications relate to derivatives-based structures.

https://twitter.com/JSeyff/status/1425564106313146375


Valkyrie just filed for a Bitcoin Futures ETF

https://twitter.com/EricBalchunas/status/1425561000028291072

Invesco, ProShares and VanEck had previously submitted applications to launch ETFs under the 1940 Act. Wilshire Phoenix has updated its application for wShares Bitcoin Commodity Trust to incorporate Gensler's recommendations.

Recall that in July Valkyrie Investments raised $10m in a Series A funding round with a wide range of investors.

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