Digital asset manager Valkyrie has announced the launch of its Bitcoin futures ETF following approval from the SEC.
Valkyrie is launching the second Bitcoin futures exchange-traded fund (ETF) in the U.S., the company announced on Friday.
Valkyrie Bitcoin Strategy ETF is ready to trade on the Nasdaq under the ticker BTF and will monitor the value of Chicago Mercantile Exchange (CME) Bitcoin futures.
Futures contracts are monetary contracts the value of which depends on, or is derived from, the underlying reference asset. In the case of Bitcoin futures, the underlying reference asset is Bitcoin.
“The approval of ETFs based on CME Bitcoin futures is an optimistic growth for the broader Bitcoin ecosystem, and a reflection of the strong growth and client demand for publicity to Bitcoin,” said Tim McCourt, International Head of Equity Index and Various Funding Products at CME.
In accordance with McCourt, the introduction of Bitcoin futures ETFs marks “an essential milestone for crypto derivatives, and will be extremely complementary to futures, creating new opportunities for a broad array of institutional and retail investors.”
More Bitcoin futures ETFs are coming
Nashville-based Valkyrie has become the third investment agency to obtain corresponding approval from the U.S. Securities and Exchange Commission (SEC) after ProShares and VanEck.
ProShares was the first to launch a Bitcoin futures ETF on the New York Stock Exchange earlier this week, and did it with success—ProShares’ Bitcoin Strategy ETF (BITO) traded $280 million value of shares in a matter of just 20 minutes.
By the tip of the trading day on October 19, nearly $1 billion had been traded.
Scorching on ProShares heels is VanEck’s Bitcoin Strategy ETF, which will go live on the New York Stock Exchange next week.
VanEck’s product would be the same kind of ETF—one that provides traders publicity to the world’s leading cryptocurrency by permitting them to trade shares that represent contracts betting on the future price of Bitcoin.