Valkyrie’s Bitcoin Futures ETF: Launch Imminent After ProShares’ Debut – What You Need to Know

The world of crypto ETFs is buzzing! Following the groundbreaking launch of ProShares’ Bitcoin Strategy ETF ($BITO), all eyes are now on Valkyrie. Are you ready for the second Bitcoin futures-based ETF to hit the US market? Bloomberg’s senior ETF analyst, Eric Balchunas, has been dropping hints, and it looks like Valkyrie’s fund is just around the corner. Let’s dive into the details of this exciting development.

Valkyrie’s ETF: Ready for Takeoff?

Just days after ProShares made history, predictions are swirling about when Valkyrie’s Bitcoin futures ETF will officially start trading. Balchunas initially suggested a launch on October 20th or 21st, following the fund’s Nasdaq listing certification. This would mark another significant milestone, making Valkyrie only the second Bitcoin ETF to launch in the United States.

Here’s a quick recap of the key predictions:

• Initial Prediction: James Seyffart, another Bloomberg analyst, initially thought Valkyrie’s Bitcoin Strategy ETF (ticker $BTF) would launch on the same day as ProShares’ $BITO.
• Balchunas’ Update: Balchunas later tweeted that Valkyrie’s launch was more “likely” for October 20th or 21st, giving ProShares a brief period of market exclusivity.
• Ticker Change: Adding to the intrigue, Balchunas confirmed that Valkyrie is changing its ticker from the previously proposed $BTFD to $BTF in its application.

Why the Delay for Valkyrie?

While ProShares enjoyed a solo debut, the slight delay for Valkyrie isn’t necessarily a setback. It could be attributed to various logistical or regulatory factors. The important takeaway is that the momentum for Bitcoin futures ETFs is undeniable.

What Happened to Invesco’s Bitcoin Futures ETF Plans?

Interestingly, amidst all the excitement, Invesco has decided to step back from the immediate race to launch a futures-based Bitcoin ETF. They clarified their position, stating:

“We have determined not to pursue the launch of a Bitcoin futures ETF… in the immediate near-term; however we will continue to work in partnership with Galaxy Digital… to offer investors a full shelf of products with exposure to this transformative asset class, including pursuing a physically-backed, digital asset ETF.”

This suggests that Invesco might be setting its sights on a physically-backed Bitcoin ETF, a different type of ETF that directly holds Bitcoin. This highlights the ongoing evolution and diversification within the crypto ETF space.

Spot vs. Futures-Based ETFs: What’s the Difference?

The current buzz is around futures-based Bitcoin ETFs. But what about a spot Bitcoin ETF? According to analysts like Seyffart and Balchunas, approval for a spot BTC-backed ETF is unlikely in the near future. This was a key point of discussion during a recent episode of Anthony Pompliano’s “Best Business Show.”

So, why the preference for futures-based ETFs by regulators like SEC Chairman Gary Gensler? Balchunas points out that Gensler feels more “comfortable” with Bitcoin futures-based ETFs due to the greater consumer protections they offer compared to spot-backed alternatives. Futures contracts trade on regulated exchanges, providing a layer of oversight and potentially reducing risks associated with the direct holding of Bitcoin.

Key Takeaways:

• Valkyrie’s Bitcoin futures ETF ($BTF) is expected to launch soon, potentially on October 20th or 21st.
• ProShares’ Bitcoin Strategy ETF ($BITO) is the first Bitcoin futures ETF to trade in the US.
• Invesco has paused its plans for a futures-based Bitcoin ETF, potentially focusing on a physically-backed option.
• Regulatory comfort with futures-based ETFs stems from the consumer protections offered by regulated futures exchanges.
• Approval for a spot Bitcoin ETF in the US seems unlikely in the immediate future.

What Does This Mean for You?

The launch of these Bitcoin futures ETFs provides traditional investors with a new avenue to gain exposure to Bitcoin within the familiar structure of an ETF. While these ETFs don’t directly hold Bitcoin, they offer a regulated and potentially less volatile way to participate in the Bitcoin market. Keep an eye on Valkyrie’s official launch and the performance of both $BITO and $BTF as the crypto ETF landscape continues to develop.

The arrival of Valkyrie’s ETF marks another exciting step in the mainstream adoption of cryptocurrency. Stay tuned for further developments in this rapidly evolving space!