Digital Assets: Valkyrie Files For Leveraged Bitcoin Futures ETF With BTFD Ticker
The SEC is still unwilling to approve a spot bitcoin ETF.
Valkyrie, an investment firm, has filed a new application for a Bitcoin futures-based exchange-traded fund (ETF) called BTFD. The firm aims to list the ETF on NASDAQ. Unlike their existing BTF fund, this new fund will be leveraged, allowing speculators to increase their exposure to Bitcoin. The ticker symbol “BTFD” is a reference to a popular meme in the finance Twitter community. The initial plan was to use this ticker for the first fund, but it was later changed in October 2021. Valkyrie has not yet commented on the matter. (Decrypt)
Both of Valkyrie’s Bitcoin-focused funds do not directly hold Bitcoin. Instead, they utilize Bitcoin futures traded on the Chicago Mercantile Exchange (CME). Futures contracts are agreements to buy or sell an asset at a predetermined time, quantity, and price. Currently, there are four Bitcoin futures-based ETFs available, with the first one being ProShares Bitcoin Futures ETF, which launched in October 2021. However, there are no ETFs that provide direct exposure to Bitcoin due to the Securities and Exchange Commission (SEC) rejecting all applications for spot Bitcoin ETFs, citing concerns about market manipulation.
Digital asset manager Grayscale is currently in a legal battle with the SEC over its Grayscale Bitcoin Trust product, which it wants to convert into a spot Bitcoin ETF. Grayscale argues that approving futures-based ETFs instead of spot ETFs is illogical and questions the SEC’s understanding of the relationship between Bitcoin futures and the spot price of Bitcoin. In March, judges overseeing the case also urged the SEC to provide a clear explanation of this relationship.
Related Story: Grayscale Files For New ETFs Even As Its Application For Spot Bitcoin Hangs Fire
Photo by Jievani Weerasinghe on Unsplash
Latest Alternative Investment News
FinTech: Adyen Launches ‘Payout Services’ For Faster Payouts To The Gig And SMB Economies
Adyen, a global financial technology platform, has launched Payout Services, allowing its customers to make instant payouts to their users or partners. By connecting directly to real-time payment rails, Adyen’s…
Digital Assets: Oracle Red Bull Racing Seeks To Digitize Engagement With Fans On The Sui Blockchain
Oracle Red Bull Racing has announced a multi-year partnership with software company Mysten Labs to collaborate on Sui, which will serve as the team’s Official Blockchain partner. Sui, a Layer…
Venture Capital: Bold, L’Oréal’s Venture Capital Fund, Buys A Stake In Exotic Cosmetic Ingredient Maker Debut
L’Oréal’s (EPA: OR) corporate venture capital fund, BOLD, has announced a minority investment in Debut, a US biotech company specializing in the discovery, formulation, and manufacture of novel ingredients and…
Artificial Intelligence: In Flight Simulation, An AI Drone Tries To Kill Its Own Handler
During a simulated test at a London summit, an AI-controlled drone turned against its human operator, raising significant ethical concerns. Air Force Colonel Tucker “Cinco” Hamilton shared the incident, which…