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- Valkyrie Digital Assets, an alternative financial services organisation, has filed for a Bitcoin exchange-traded fund (ETF) that will provide indirect exposure to BTC through cash-settled futures contracts
- According to Bloomberg’s senior ETF analyst Eric Balchuna, Valkyrie is now the fourth asset management firm to register for an ETF tied to Bitcoin futures under the 1940 Company Act since Gensler’s speech, following ProShares, Invesco, and VanEck
- It’s possible that these will be approved as early as November this year, but he had football yanked away from me far too many times to be certain
Valkyrie Digital Assets, an alternative financial services organisation, has filed for a Bitcoin exchange-traded fund (ETF) that will provide indirect exposure to BTC through cash-settled futures contracts. According to a draught prospectus dated August 11, Bitcoin futures contracts will be purchased via exchanges registered with the US Commodity Futures Trading Commission by a Cayman Island-based company that is completely owned by the fund.
The fund will initially invest only in Bitcoin contracts traded on the Chicago Mercantile Exchange (CME), with the ETF aiming for a total notional value of its underlying futures contracts as close to 100 percent of the fund’s net assets as possible, according to the prospectus.
Valkyrie previously filed for a spot Bitcoin ETF under the Securities Act of 1933, but the new filing comes just one week after SEC Chairman Gary Gensler hinted that he might be open to approving exchange-traded products exposed to regulated Bitcoin futures contracts under the Investment Company Act of 1940. The 40 Act, when paired with other federal securities laws, provides significant investor protections, according to Gensler.
Given these critical safeguards, he eagerly awaits the staff’s evaluation of such filings, especially if they are limited to certain CME-traded Bitcoin futures. Valkyrie is now the fourth asset management firm to file for an ETF related to Bitcoin futures under the 1940 Company Act since Gensler’s speech, following ProShares, Invesco, and VanEck, according to Bloomberg’s senior ETF analyst Eric Balchunas.
As per the filed report, the Fund will invest indirectly in standardised, cash-settled bitcoin futures contracts through a wholly-owned subsidiary formed under the laws of the Cayman Islands. Commodity exchanges registered with the Commodity Futures Trading Commission trade such futures contracts. Currently, bitcoin futures contracts in which the Fund will invest are only traded on the Chicago Mercantile Exchange (the CME) and are subject to its rules. The CME CF is used to assess the value of bitcoin futures. The Bitcoin Reference Rate is a figure that shows how much bitcoin costs on different cash bitcoin exchanges. The Fund’s goal is to make investments.
Balchunas speculated that the funds could receive a decision from the SEC as early as November, based on Gensler’s recent remarks. He mentions in his tweet that this is the fourth bitcoin futures ETF to be filed under the 1940 Act, following Proshares, VanEck, and Invesco. It’s possible that these will be approved as early as November this year, but he had football yanked away from me far too many times to be certain.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
