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The Valkyrie Leveraged Bitcoin Futures ETF takes inspiration from TradFi memes

Published on

May 17, 2023
Read Time:2 Minute, 10 Second

Valkyrie Funds makes use of one of many well-liked memes from the monetary Twitter group, referred to as "Fintwit", in its newest futures-based Change Traded Fund (ETF) to generate consideration and curiosity.

On Might 16, the funding agency submitted a brand new submitting for a Bitcoin (BTC) futures-based ETF to be listed on Nasdaq with the ticker image “BTFD”.

Each of Valkyrie's bitcoin-centric funds don't have any direct publicity to bitcoin itself; As a substitute, they put money into bitcoin futures traded on the Chicago Mercantile Change. Bitcoin futures are monetary contracts that permit buyers to take a position on the longer term worth growth of bitcoin. These contracts oblige the customer to purchase or the vendor to promote bitcoin at a predetermined worth on a particular future date. In contrast to buying and selling bitcoin, which includes proudly owning and holding the digital asset your self, bitcoin futures permit merchants to take a position on the value of bitcoin with out instantly proudly owning it.

The suggestive ticker was initially supposed for the primary fund allegedly modified by the corporate in October 2021.

In contrast to the corporate's present Block Buying and selling Facility (BTF) fund, this newly proposed fund will supply leverage, permitting speculators to extend their publicity to the dominant cryptocurrency. A BTF is an actively managed ETF obtainable via Nasdaq that invests primarily in Bitcoin futures contracts.

To this point, 4 totally different Bitcoin futures-based ETFs have been launched available in the market. The primary, ProShares Bitcoin Futures ETF, launched in October 2021.

To this point, the U.S. Securities and Change Fee (SEC) has denied a number of makes an attempt to launch spot Bitcoin ETFs or funds that provide direct publicity to the dominant cryptocurrency, citing issues about attainable market manipulation within the Bitcoin market .

Associated: Replace: Court docket Victory for Ripple as Choose Denies SEC Request to Seal Hinman Paperwork

Digital asset supervisor Grayscale is presently locked in a protracted authorized battle with the SEC attempting to transform its ailing Grayscale Bitcoin Belief right into a Bitcoin spot ETF. The funding agency slammed the SEC's resolution to permit futures-based ETFs over spot ETFs, calling it "illogical."

In March the judges The chair of the dispute between the two companies at the U.S. Court of Appeals for the District of Columbia Circuit felt that the SEC needs to provide “a thorough explanation” on its understanding of the connection between bitcoin futures and bitcoin’s spot price.

Magazine: Ordinals Made Bitcoin a Worse Version of Ethereum: Can We Fix It?

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Azeez Mustafa
Azeez began his FinTech career path in 2008 after growing interest and intrigue about market wizards and how they managed to become victorious on the battlefield of the financial world. After a decade of learning, reading and training the ins and outs of the industry, he’s now a sought after trading professional, technical/currency analyst and funds manager – as well as an author.
Last Updated : May 17, 2023
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