Valkyrie announced the launch of the second Bitcoin futures exchange-traded fund (ETF) in the United States on Friday.
Valkyrie’s Bitcoin Strategy ETF, which will trade under the ticker BTF on the Nasdaq, will track the value of Chicago Mercantile Exchange (CME) Bitcoin futures.
Futures contracts are financial contracts in which the value is determined by or is derived from the underlying reference asset. The underlying reference asset in the case of Bitcoin futures is Bitcoin.
“”The approval of ETFs based on CME Bitcoin futures is a positive development for the broader Bitcoin ecosystem, as well as a reflection of the strong growth and client demand for exposure to Bitcoin,” said Tim McCourt, Global Head of Equity Index and Alternative Investment Products at CME.
According to McCourt, the launch of Bitcoin futures ETFs marks “an important milestone for crypto derivatives, and will be highly complementary to futures, creating new opportunities for a diverse range of institutional and retail investors.””
More Bitcoin futures ETFs are on the way.
Valkyrie, based in Nashville, is the third investment firm to receive corresponding approval from the US Securities and Exchange Commission (SEC), following ProShares and VanEck.
ProShares was the first to list a Bitcoin futures ETF on the New York Stock Exchange earlier this week, and it did so successfully—ProShares’ Bitcoin Strategy ETF (BITO) traded $280 million in shares in just 20 minutes.
Nearly $1 billion had been traded by the end of the trading day on October 19.
VanEck’s Bitcoin Strategy ETF, which will go live on the New York Stock Exchange next week, is hot on ProShares’ heels.
VanEck’s product will be the same type of ETF—one that allows investors to trade shares that represent contracts betting on the future price of Bitcoin, giving them exposure to the world’s leading cryptocurrency.