In the week that the first ever Bitcoin Futures ETF was launched on the New York Stock Exchange (NYSE), it has been announced that Valkyrie Bitcoin Strategy ETF is set to begin trading on 22 October.
Valkyrie Bitcoin Strategy beats VanEck to the number 2 place
The launch of the Valkyrie Bitcoin Strategy ETF is good news for the firm, as it beats the VanEck Bitcoin ETF in the race of who will launch next, The bitcoin ETF race in the U.S. has been fierce over the past year. After several delayed applications, the regulator finally allowed an ETF linked to bitcoin to start trading earlier this weekBut with one caveat — none of the three offerings yet approved will buy or hold BTC directly.
Instead, the set of ETFs being listed in the U.S. have all been bitcoin futures ETFs, meaning they seek bitcoin exposure through futures contracts of BTC traded on the Chicago Mercantile Exchange.
Van Eck will begin trading the third ever Bitcoin ETF from next week on Monday 25th October.
In September, SEC chairman Gary Gensler commented that derivatives-based BTC ETFs would be more likely to be approved by the regulating commission. Fast-forward one month and a handful of bitcoin futures ETFs are successfully lined up for listing in the country.
Proshares ETF becomes first ETF to reach $1B AUM.
Today, the first bitcoin-linked ETF to list in the U.S. became the fastest ETF ever to reach $1 billion in assets under management (AUM). The gold ETF GLD held the previous record as the quickest exchange-traded fund to hit $1 billion in AUM — three days. Proshares hit the milestone in just 2 days, marking an exceptional milestone in the history of cryptocurrency.
BITO went live on the 19th October as an alternative investment vehicle for retail and institutional investors interested in indirect bitcoin exposure. The fund invests in bitcoin futures contracts, rather than actual BTC, and thus price appreciation of the fund’s shares may not track the bitcoin spot market price. [Source: proshares press release]
An ETF investing in bitcoin futures instead of actually holding BTC was a trend spurred by the Securities and Exchange Commission (SEC) chair Gary Gensler. In September, Gensler said offerings that seek bitcoin exposure through regulated futures contracts of the CME would have a higher chance of approval, citing “investor protection” concerns.