Key Takeaways
- Valkyrie has launched its Bitcoin futures ETF under the ticker BTFD.
- The ETF is the second of its kind. ProShares launched a similar ETF this Tuesday; VanEck will do so next week.
- These funds track the value of Bitcoin futures. There is still no U.S.-based ETF that tracks the value of Bitcoin itself.
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Valkyrie has launched its Bitcoin futures ETF, an investment fund that tracks the value of Bitcoin futures.
Valkyrie ETF Is Live
The fund went live on Friday, Oct. 22, under the ticker BTFD on Nasdaq. The acronym was chosen to suggest “Bitcoin futures” as well as the meme trader catchphrase “buy the f—ing dip.”
Valkyrie noted that Bitcoin futures are “becoming an increasingly popular investment vehicle for both individuals and institutions” and said that its ETF provides exposure to more investors “without the pitfalls and hurdles” of direct investment.
Exchange-traded funds or ETFs provide investors with a way to invest in Bitcoin and its derivatives indirectly, without the need to hold Bitcoin in a wallet and without the need to register with a retail exchange. This approach appeals to institutional investors who are more familiar with traditional investment vehicles.
Market Details Revealed
Valkyrie’s fund carries a fee of 0.95%, or $0.95 on every $100 invested. That fee is equivalent to ProShares’ ETF fee, though VanEck’s upcoming ETF aims to provide a lower fee of 0.65%.
Currently, ProShares’ fund (BITO) is outperforming Valkyrie’s fund (BTFD). While the former has a daily high/low of $41.30/$38.90, the latter has a daily high/low of just $25.50/$23.93.
The trading day has not yet concluded, making it difficult to say which fund will have more appeal. Valkyrie’s fund brought in $10 million of volume within the first five minutes. ProShares, by contrast, brought in $570 million over the course of its first day.
Futures ETFs Are on the Rise
Today’s launch is the second in a series of newly-approved Bitcoin futures ETFs. ProShares was the first company to launch a Bitcoin futures ETF in the United States as its product went live on Tuesday, one day later than expected.
VanEck’s Bitcoin futures ETF will be the next fund to go live. It is expected to launch next week on Monday, Oct. 25.
These ETFs all track the value of Bitcoin futures, not the value of Bitcoin itself. To date, there is still no true Bitcoin ETF in the United States that tracks the market value of Bitcoin.
Disclaimer: At the time of writing this author held less than $100 of Bitcoin, Ethereum, and altcoins.
This news was brought to you by Phemex, our preferred Derivatives Partner.
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