Asset management firm Valkyrie has introduced a second ETF that is tied to Bitcoin futures. It is important to note that the firm launched a Bitcoin spot ETF earlier in January this year. The latest ETF is set to get a listing at NASDAQ under the ticker BTFX. The firm announced the new fund on 22nd February and noticed that the shares of BTFX will start trading shortly.
The nominated asset manager shared that the fund was a leveraged Bitcoin futures ETF that intends to generate twice the performance of the CME Bitcoin Futures Market.
2x Leveraged Bitcoin Futures ETF
The launch of BTFX indicates the introduction of another fund that is associated with Bitcoin futures and also listed on NASDAQ under the ticker BTFD. This ticker is an allusion to investment jargon called buys the fucking dip. Valkyrie is among the first firms to list and trade share of spot Bitcoin ETF in January with the SEC granting it the first go among 10 other applications riding in the same boat.
Valkyrie CEO, Leah Wald noticed that Bitcoin has gained a massive amount of focus right now. Many of the top financial institutions and investors are looking for ways to integrate Bitcoin into different types of financial instruments and become part of this space.
Bloomberg analyst Eric Balchunas posted that $BTFX is going to go up against $BITX which has gained $350 million in funds already. He notices that out of 15 leveraged Bitcoin spot ETFs, there is going to be a percentage that could give competition to futures alternatives.
Coinbase as a Custodian for Valkyrie’s Bitcoin ETF
Valkyrie is set to publish another Bitcoin spot ETF using Coinbase as custodian. At the same time, the firm has also partnered with BitGo a digital trust management firm as custodian. The asset management firm has indicated that adding multiple custodian services providers is part of the diversification plan of the organization. To finalize the listing of Bitcoin spot ETF, the firm submitted an 8-K form at SEC on 1st Feb.
The officials at Valkyrie have stated that it has finalized a custodial deal with BitGo on 17th January earlier this year. As part of this service agreement, BitGo is going to offer custodial services and security for all Valkyrie’s Bitcoin ETF holdings.
The firm has further noted that it is working on bringing in Coinbase as an additional custodian. BitGo is working as custodial services support for two firms namely Valkyrie and Hashdex.
BitGo CEO Mike Belshe has noticed that custodian diversification is the best approach to lessen risks associated with ETF custody. He talked about the new development as a big win for the entire industry.
Speaking on the matter, Bloomberg analyst James Seyffart claimed that he is not surprised if other ETF issuers will take the same path. The firm listed its spot Bitcoin ETF under the ticker BRRR with $113.5 million in AUM as of 31st January, according to data projections from BitMEX Research.
Valkyrie to Reduce 30% Staff
Valkyrie Investments has consolidated its name among the top crypto ETF issuers. However, the firm experienced turbulence during the prolonged crypto winter. On this account, Valkyrie Investments announced laying off 30% of its 23-staff workforce in November 2022.
The private company told Bloomberg about the looming financial troubles on account of the saturation in the cryptocurrency market at the time.
Speaking with the journalists, Valkyrie management told journalists that the team conducted a thorough audit of each employee on a year-to-date basis. A Blockworks report revealed that the Valkyrie staff was cut back to only 16 full-time employees following the haircut in 2022.
However, the firm trimmed HR before the FTX crash and did not have any stakes in the asset management firm. As per data projections on Yahoo Finance, Valkyrie’s Bitcoin and ETH Strategy Fund (BTF) peaked on 8th November 2021 reaching an ATH of $25.34. At present, BTF is trading at $18.34w with a 2.75% intraday increment.
A Reuters report quoted a statement issued by Valkyrie Funds LLC on 29th September 2023 indicating the firm halting new ETH futures. However, the administration noted that the purchase of new ETF futures will commence after resolving registration issues with the Securities and Exchange Commission.
