Valkyrie becomes the fourth company to use BTC futures ETF

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Asset management companies seem to want the SEC to accept Bitcoin ETFs related to futures contracts more easily than Bitcoin ETFs centered on the spot market.

Valkyrie, an alternative currency service company, is Digital Assets, which has become the latest company to apply for a Bitcoin exchange-traded fund (ETF), which provides indirect exposure to BTC through cash-settled futures contracts.

According to the draft prospectus dated August 11, Bitcoin futures contracts will be purchased by the fund’s subsidiary in the Cayman Islands through an exchange registered with the U.S. Commodity Futures Trading Commission.

The prospectus added that the fund can first only invest in Bitcoin contracts listed on the Chicago Mercantile Exchange (CME). The ETF’s goal is to “read 100% of cyberspace assets” at the full notional price of its underlying futures contracts. Has potential. “

Valkyrie also applied for a spot bitcoin ETF under the Securities Law (1933) in April, but the new application was a week ago SEC Chairman Gary Gensler instructed him to also approve exchange-traded commodities exposed to regulated BTC futures contracts. 1940 Annual Fund Act.

“When combined with the opposite federal securities laws, the ’40 Act provides vital capitalist protection,” Gensler mentioned.

“In view of these important safeguards, I expect staff will review such documents, and if these documents are limited to Bitcoin futures traded by CME Group, it will be of great significance.”

Bloomberg’s senior ETF analyst Eric Balchunas pointed out that Valkyrie is currently the fourth asset management company to submit ETF documents related to Bitcoin futures since Gensler’s speech. This ETF is second only to ProShares, Invesco and VanEck.

According to Gensler’s recent remarks, Balchunas initially predicts that these funds may receive the SEC’s investigation results as early as November 12.


Technical director.

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