Valkyrie Launches 2x Leveraged Bitcoin Futures ETF, Offering Investors a Way to Gain Exposure to Bitcoin’s Price Action
- None.
- None.
The introduction of Valkyrie Bitcoin Futures Leveraged Strategy ETF (BTFX) is a significant development in the landscape of financial products tied to cryptocurrency markets. This ETF offers investors a leveraged exposure to Bitcoin futures, aiming to double the daily performance of the S&P CME Bitcoin Futures Index. The advent of such a product could potentially increase the volatility of an investor's portfolio due to the inherent risks associated with leveraged investments. Leveraged ETFs amplify the gains or losses relative to the underlying asset's movements, which can lead to substantial losses if the market moves against the position.
From a liquidity standpoint, the creation of BTFX may enhance the market depth for Bitcoin futures, as it could attract more participants. However, it's crucial to note that the performance of leveraged ETFs over periods longer than a day can diverge significantly from the performance of their benchmark index due to the effects of compounding. Investors should be aware that these products are typically better suited for short-term trading strategies rather than long-term investments.
The launch of the Valkyrie Bitcoin Futures Leveraged Strategy ETF reflects growing investor appetite for digital asset derivatives and the increasing institutionalization of cryptocurrency investment vehicles. This product provides a regulated avenue for exposure to Bitcoin's price movements without direct ownership of the asset, which may appeal to a broader range of investors, including those who are prohibited from holding cryptocurrencies directly due to regulatory or mandate restrictions.
Moreover, the introduction of BTFX could potentially stimulate further innovation and competition within the digital asset ETF space, prompting the development of more sophisticated products. This trend could lead to a wider acceptance of cryptocurrencies as a legitimate asset class among traditional investors, thereby integrating digital assets into the mainstream financial ecosystem.
The regulatory environment surrounding digital assets and related financial products is complex and evolving. The launch of BTFX by Valkyrie, a firm that operates within this regulated space, underscores the importance of compliance with securities laws and the oversight of financial regulators. The existence of a leveraged Bitcoin futures ETF indicates that the regulatory framework is adapting to accommodate the demand for crypto-related investment products while ensuring investor protection.
It is essential for firms offering such products to adhere to disclosure requirements and to educate investors about the risks involved with leveraged and derivative-based investment strategies. Regulatory scrutiny is likely to persist and future regulatory developments could impact the operations and adoption of products like BTFX.
The leveraged ETF follows the successful debut of the Company’s spot Bitcoin ETP
“The launch of BTFX represents our commitment to bringing investors innovative options for accessing Bitcoin and the digital asset ecosystem as a whole,” said Leah Wald, CEO of Valkyrie. “With Bitcoin so much in the focus right now, traders and investors are looking at how they can use financial instruments to tap into this space, and as a leader in digital-asset-focused ETFs, we wanted to be sure we provide them with a great fund.”
BTFX operates by investing in Bitcoin futures contracts, with the objective of providing, before fees and expenses, two-times the daily performance of the Index, which is designed to measure the performance of the CME Bitcoin Futures market and is rolled on a scheduled basis.
“BTFX is designed for those who see beyond the horizon of traditional investments, offering a strategic tool to capitalize on the volatility and growth prospects of Bitcoin,” said Steven McClurg, CIO of Valkyrie. “It also showcases our commitment to delivering tailored digital asset products, providing our clients with the means to engage with the crypto market through a regulated, familiar format. It's an exciting step for Valkyrie in our mission to bridge the gap between conventional financial markets and the burgeoning world of digital assets.”
To learn more about the fund, visit: Valkyrie Bitcoin Futures Leveraged Strategy ETF.
About Valkyrie
Valkyrie 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
Disclosures and Risks
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 Fund’s prospectus contains this and other important information and can be found at this link: https://valkyrie-funds.com/btfx/btfxprospectus/. Read it carefully before investing.
Leverage Risk. The Fund presents different risks than other types of funds. The Fund is not suitable for all investors and should be used only by knowledgeable investors who understand the consequences of seeking daily leveraged (2x) investment results, including the impact of compounding on Fund performance. The Fund is intended to be used as a short-term trading vehicle. Investors in the Fund should actively manage and monitor their investments, as frequently as daily. The Fund in not intended to be used by, and is not appropriate for, investors who do not actively monitor and manage their portfolio. An investor in the Fund could potentially lose the full value of their investment within a single day. The Fund does not invest directly in Bitcoin. Instead, the Fund seeks to benefit from increases in the price of Bitcoin futures contracts for a single day.
Daily Rebalancing Risk. Daily rebalancing and the compounding of each day’s return over time means that the return of the Fund for a period longer than a single day will be the result of each day’s returns compounded over the period. This will very likely differ in amount, and possibly even direction, from twice the return of the Index for the same period. The Fund will lose money if the Index’s performance is flat over time. The Fund can lose money regardless of the performance of the Index, as a result of daily rebalancing, the Index’s volatility, compounding of each day’s return and other factors.
Volatility Risk. 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 in the Fund 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. The price and performance of cryptocurrency futures and cryptocurrency-linked instruments or assets should be expected to differ from the current “spot” prices (the prices at which the cryptocurrency can be purchased immediately) of those same currencies. These differences could be significant. Cryptocurrency futures are subject to costs, margin requirements, collateral requirements, and other limits that may negatively impact their performance or the performance of an investment vehicle which utilizes them. Cryptocurrencies are largely unregulated and cryptocurrency-linked investments may be more susceptible to fraud and manipulation than more regulated investments. Cryptocurrencies and cryptocurrency futures are subject to rapid price swings including as a result of actions and statements by influencers and the media, changes in the supply and demand for the cryptocurrency or their futures, and other factors. If a fund’s ability to obtain exposure to cryptocurrency-linked investments consistent with their investment objectives is disrupted for any reason, including as a result of a lack of liquidity, volatility, or a disruption in the cryptocurrency or cryptocurrency futures market, or as a result of margin requirements, position limits, or other conditions, factors, or limitations of a particular fund, the fund may not be able to achieve its investment objective and may experience significant losses. Cryptocurrencies are subject to unique and substantial risks, including significant price volatility and lack of liquidity. The value of a cryptocurrency may decline significantly without warning, including to zero. Cryptocurrencies are largely unregulated and cryptocurrency-linked investments may be more susceptible to fraud and manipulation than more regulated investments. If a fund’s ability to obtain exposure to cryptocurrency-linked investments consistent with their investment objectives is disrupted for any reason, including as a result of a lack of liquidity, volatility, or a disruption in the cryptocurrency or cryptocurrency futures market, or as a result of margin requirements, position limits, or other conditions, factors, or limitations of a particular fund, the fund may not be able to achieve its investment objective and may experience significant losses.
The Fund is distributed by ALPS Distributors, Inc.
Paralel Distributors LLC is the marketing agent for BRRR. Paralel is unaffiliated with Valkyrie and its affiliates and ALPS Distributors, Inc.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240222732872/en/
Tova Kaufmann
Gregory FCA for Valkyrie Funds
469.585.9410
tova@gregoryfca.com
Source: Valkyrie Investments Inc.
FAQ
What is the ticker symbol of Valkyrie Bitcoin Futures Leveraged Strategy ETF?
What is the objective of Valkyrie Bitcoin Futures Leveraged Strategy ETF?
Who is the CEO of Valkyrie Investments Inc.?
What is the strategic tool offered by BTFX?