Valkyrie Funds launches the Valkyrie Bitcoin Strategy ETF (BTF) focused on Bitcoin futures

Rhea-AI Summary

Valkyrie Funds announced the launch of the Bitcoin Strategy ETF (BTF), designed to track the value of Chicago Mercantile Exchange (CME) Bitcoin futures. This ETF aims to provide a regulated and transparent investment vehicle for individuals and institutions interested in Bitcoin without direct involvement in cryptocurrencies. With the potential increase in crypto ownership from 21 million to 51 million Americans, this ETF marks significant progress in the digital asset space. Investing in BTF entails risks, including high volatility and potential losses.

Positive

• Launch of Bitcoin Strategy ETF (BTF) enhances accessibility to Bitcoin investments.
• Targets growing interest in regulated crypto products, potentially attracting new investors.
• First ETF in a planned series from Valkyrie Funds, indicating future growth and offerings.

Negative

• Investors face high volatility and significant risks associated with Bitcoin futures.
• The ETF may not achieve its investment objective and could lead to total loss of capital.

NASHVILLE, Tenn., Oct. 22, 2021 /PRNewswire/ -- Valkyrie Funds, LLC  ("Valkyrie"), an emerging investment manager focused on the digital asset class, is excited to announce the launch of the Bitcoin Strategy ETF (Nasdaq: BTF). An exchange traded fund (ETF) that aims to solely track the value of Chicago Mercantile Exchange (CME) Bitcoin futures.

Bitcoin and other digital assets are becoming an increasingly valuable part of peoples' investing strategies. About 21 million Americans already own crypto, and that number is set to more than double to 51 million in the next year, according to a recent survey by Gemini. As more and more people become familiar and comfortable with this new asset class, they are seeking regulated products to invest in on platforms they currently use and enjoy.

"This Bitcoin Strategy ETF is a major leap forward for this asset class," said Leah Wald, CEO at Valkyrie. "It enables investors to participate in the digital asset markets through a regulated, transparent product that trades on a trusted, reliable exchange and can be bought and sold as easily as any other investment currently available."

Bitcoin futures are fully regulated in the U.S. on the Chicago Mercantile Exchange ("CME") and are becoming an increasingly popular investment vehicle for both individuals and institutions. The goal of this actively managed fund is to track the value of these products in a liquid basket of securities. By doing so, BTF provides exposure to a wider audience of investors, advisors and more, without the pitfalls and hurdles typically associated with investing directly in crypto assets.

"The approval of ETFs based on CME Bitcoin futures is a positive development for the broader bitcoin ecosystem, and a reflection of the strong growth and client demand for exposure to bitcoin via our transparent, deeply liquid and regulated futures contracts," said Tim McCourt, CME Group Global Head of Equity Index and Alternative Investment Products. "The introduction of funds, like the Valkyrie Bitcoin Strategy ETF, mark an important milestone for crypto derivatives, and will be highly complementary to futures, creating new opportunities for a broad array of institutional and retail investors."

The futures contracts held by the fund are cash delivered and available from CME Group. This fund is the first in a planned suite of ETFs from Valkyrie designed to enable investors to participate in the blockchain and digital asset space.

About Valkyrie Funds LLC

Valkyrie Funds LLC ("Valkyrie Funds") is a specialized alternative financial services firm at the intersection of traditional finance and the emerging cryptocurrency sector whose affiliates aim to offer asset management, research and other services. Headquartered in Nashville with offices across the United States,Valkyrie Funds aims to provide exposure to the emerging digital asset class through traditional financial vehicles. Valkyrie Funds is led by seasoned asset managers who have previously launched multiple ETFs, publicly traded funds and Exchange Traded Products, including digital asset funds with backgrounds across Guggenheim Partners, UBS, Chicago Board of Trade, Chicago Mercantile Exchange, and The World Bank.

Investment Objective

The Valkyrie Bitcoin Strategy ETF (BTF) is an actively managed ETF. The Fund seeks to provide investors with capital appreciation. There can be no assurance that the Fund will achieve its investment objective.

Disclaimer

This press release does not constitute a recommendation of any investment strategy or product for a particular investor. Investors should consult a financial advisor/financial consultant before making any investment decisions.

Investing involves risks. The loss of principal is possible. The Fund's investment objectives, risks, charges and expenses should be considered before investing. The fund may not be suitable for all investors. The prospectus contains this and other important information, and it may be obtained at https://valkyrie-funds.com/. Read it carefully before investing

Shares of ETFs are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. Any applicable brokerage fees and commissions will reduce returns.

The Fund invests in bitcoin futures contracts. The Fund does not invest directly in or hold bitcoin. The price of bitcoin futures should be expected to differ from the current price of bitcoin. As a result, the performance of the Fund should be expected to differ from the performance of the spot price of bitcoin. Futures contracts are subject to margin requirements, collateral requirements and daily limits that may prevent the Fund from achieving its objective. The market for bitcoin futures may be less developed, less liquid and more volatile than more established futures markets.

Bitcoin futures contracts are an agreement traded on an organized exchange to buy or sell assets, such as Bitcoin, at a fixed price. Typically, these assets are delivered and paid for later. In this case, the cash value of the asset would be the deliverable.

Derivatives are financial contracts that derive their value from an underlying asset, in this case Bitcoin. They are commonly used to evaluate downside or upside risk and can be used as a hedge against said risk.

The Fund is distributed by ALPS Distributors, Inc.

This is a new ETF with limited operating history.

Bitcoin and bitcoin futures are a relatively new asset class. They are subject to unique and substantial risks, and historically, have been subject to significant price volatility. The value of an investment in the Fund could decline significantly and without warning, including to zero. You should be prepared to lose your entire investment.

The Shares will change in value, and you could lose money by investing in the Fund. The Fund may not achieve its investment objective.

Market Risk

The prices of bitcoin and bitcoin futures have historically been highly volatile. The value of the Fund's investments in bitcoin futures and other instruments that provide exposure to bitcoin and bitcoin futures – and therefore the value of an investment in the Fund – could decline significantly and without warning, including to zero. If you are not prepared to accept significant and unexpected changes in the value of the Fund and the possibility that you could lose your entire investment in the Fund you should not invest in the Fund.

Media contact
Ryan Gorman
Principal, RGPR
ryan@gormanstrategies.com
646-820-4212

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SOURCE Valkyrie Investments

FAQ

What is the Bitcoin Strategy ETF (BTF)?

The Bitcoin Strategy ETF (BTF) is an exchange traded fund launched by Valkyrie Funds that aims to track the value of CME Bitcoin futures.

When was the Bitcoin Strategy ETF (BTF) launched?

The Bitcoin Strategy ETF (BTF) was launched on October 22, 2021.

What are the risks associated with investing in BTF?

Investing in BTF involves unique risks, including high volatility and the potential for significant losses, including the possibility of losing the entire investment.

How does BTF provide exposure to Bitcoin?

BTF provides exposure to Bitcoin by investing in futures contracts traded on the Chicago Mercantile Exchange, rather than holding Bitcoin directly.

Why is BTF significant in the cryptocurrency market?

BTF is significant as it represents a regulated investment vehicle, catering to increasing demand for Bitcoin among both retail and institutional investors.