Valkyrie is introducing a bitcoin futures ETF with leverage of two times. The Valkyrie Bitcoin Futures Leveraged Strategy ETF will be traded as BTFX. The fund aims to achieve double the daily performance of the CME Bitcoin Futures market index through investments in Bitcoin futures contracts. Steven McClurg, co-founder of Valkyrie, stated that the ETF is primarily aimed at institutional investors and hedge funds. The Fund does not directly invest in bitcoin. Instead, the Fund aims to profit from price increases of Bitcoin Futures Contracts over a one day period, as explained in a filing with the Securities and Exchange Commission for the fund. McClurg, speaking to Blockworks, noted strong trading activity for the day. Valkyrie stated that there is no requirement to disclose bitcoin ETF wallet addresses publicly. In January, the SEC approved the launch of several spot bitcoin ETF funds. Valkyrie was one of around twelve firms that moved forward with launching a spot ETF. According to McClurg, the SEC had some reservations about their BTFX proposal, but the approval of spot bitcoin ETFs made the process of getting theirs approved much simpler. Regulators find it easier to manage a leveraged Bitcoin ETF as it is solely based on futures, unlike Bitcoin spot. “He continued by mentioning that Valkyrie has been focusing on BTFX for a couple of years after launching its bitcoin futures ETF in 2021, as it does not present the same custody challenges as bitcoin spot trading.” The company initially applied for a leveraged ETF in 2021. CEO Leah Wald explained that with Bitcoin being a major focus, traders and investors are seeking ways to invest in this space through financial instruments. While other issuers are turning their attention to spot ether ETFs, Valkyrie remains focused on bitcoin. They are committed to building products that provide easy access to the Bitcoin ecosystem, whether it be through spot or mining ETFs. Subscribe to our free daily newsletter to stay informed about important developments.