Valkyrie Leveraged Bitcoin Futures ETF draws inspiration from TradFi memes



In its latest futures-based exchange-traded funds (ETF) filing, Valkyrie is using one of the popular memes in the financial Twitter community, known as the “funtwit,” to capture attention and interest.

On May 16, the investment firm Presented A new application for a bitcoin futures-based ETF, intended to be listed on Nasdaq with the ticker symbol “BTFD”.

Both of Valkyrie’s bitcoin-focused funds have no direct exposure to bitcoin itself; Instead, they rely on bitcoin futures traded on the Chicago Mercantile Exchange (CME). Bitcoin futures are financial contracts that allow investors to speculate on the future price movements of bitcoin. These contracts oblige the buyer to buy or sell bitcoin at a predetermined price on a specific future date. Unlike trading actual bitcoin, which involves owning and holding the digital asset itself, bitcoin futures enable traders to speculate on the price of bitcoin without directly owning it.

Initially Intended For First Fund, Suggestive Ticker Reportedly Gone Change by the firm in October 2021.

Unlike the firm’s existing Block Trading Facility (BTF) fund, this newly proposed fund will offer leverage, allowing speculators to increase their exposure to major cryptocurrencies. BTF is an actively managed ETF available through Nasdaq that invests primarily in bitcoin futures contracts.

Up to this point, the market has seen the introduction of four different bitcoin futures-based exchange-traded funds (ETFs). The initial one, known as the ProShares Bitcoin Futures ETF, is slated to launch in October 2021.

So far, the Securities and Exchange Commission (SEC) has denied many attempts to introduce Bitcoin spot ETFs, or funds that provide direct exposure to major cryptocurrencies, cited concerns about potential market manipulation in the bitcoin market.

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Grayscale, a digital asset manager, is currently embroiled in a protracted legal dispute with the SEC as it seeks to convert its struggling Grayscale Bitcoin Trust product (GBTC) into a spot bitcoin ETF. The investment firm criticized the commission’s decision to authorize futures-based ETFs instead of spot ETFs, considering it “illogical”.

In March, judges presided over a dispute between two entities in tThe United States (US) Court of Appeals for the DC Circuit expressed the view that the SEC “must fully explain” its understanding of the relationship between bitcoin futures and the spot price of bitcoin.

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