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Valkyrie files for a Bitcoin futures ETF with US SEC

Updated: Aug 23, 2024
Published: Aug 12, 2021
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The number of cryptocurrency ETF applications with the United States SEC continues to increase as the market gains more popularity.

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Valkyrie files for a Bitcoin futures ETF

Asset management firm Valkyrie has filed for a Bitcoin (BTC) futures exchange-traded fund (ETF) with the US Securities and Exchange Commission (SEC). Valkyrie filed this ETF while it still has a Bitcoin ETF application with the regulatory agency.

According to the SEC filing dated August 11, the new ETF will not directly invest in the leading cryptocurrency. Instead, it will invest in a number of bitcoin futures contracts. This ETF differs from the earlier Bitcoin ETF the asset manager submitted to the US SEC.

Valkyrie said, “The Fund will invest indirectly, via a wholly-owned subsidiary of the Fund organized under the laws of the Cayman Islands (the “Subsidiary”), in standardized, cash-settled futures contracts on bitcoin. Such futures contracts are traded on commodity exchanges registered with the Commodity Futures Trading Commission (the “CFTC”). Currently, bitcoin futures contracts in which the Fund will invest are only traded on, or subject to the rules of, the Chicago Mercantile Exchange (the “CME”).”

Furthermore, the value of the Bitcoin futures would be determined by reference to the CME CF Bitcoin Reference Rate, providing an indication of Bitcoin’s price across a wide range of exchanges.

Gensler would favor a Bitcoin futures ETF

Valkyrie filed this ETF proposal after SEC chair Gary Gensler mentioned last week that the regulatory agency is interested in exchange-traded products tied to bitcoin futures. The SEC is yet to approve ETFs tied directly to Bitcoin and Ether but could approve the Bitcoin futures ETF.

In addition to Valkyrie, ProShares, Invesco and VanEck have all submitted Bitcoin futures ETF proposals to the US SEC.

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