Valkyrie Digital Assets joins the Bitcoin ETF ring, amplifying the war cry of crypto traders. The investment firm filed a registration form on June 21st proposing a Bitcoin spot ETF on the Nasdaq under the symbol BRRR. The news follows fierce competition from fellow ETF applications by Blackrock, WisdomTree, and Invesco, as well as a series of unconfirmed reports about Fidelity’s own ETF plans. Valkyrie’s addition signals Bitcoin is on the cusp of a new era of institutional adoption.
Valkyrie Bitcoin Strategy ETF (BTF): Offering Leveraged Exposure to Bitcoin
Valkyrie offers the Valkyrie Bitcoin Strategy ETF (BTF) and the Valkyrie Bitcoin Miners ETF (WGMI) to investors. The new ETF application is an upgrade of the BTF Fund, ready to provide leveraged exposure to the leading cryptocurrency. The recent approval of Bitcoin futures-based ETFs by the SEC enables the upgrade, allowing speculators to increase their Bitcoin exposure.
Digital asset managers, like Grayscale, welcomed the news. They have been battling the SEC over converting their Grayscale Bitcoin Trust (GBTC) into a spot Bitcoin ETF. The SEC, however, has been cautious in its approach, citing concerns over the possibility of market manipulation. It is why so far only futures-based ETFs have been approved instead of spot ETFs.
Speaking of futures, Valkyrie plans to list its fund on the Chicago Mercantile Exchange (CME) where traders can practice futures contracts. In such a contracts, traders hold an agreement that obligates them to buy or sell a particular asset at a predetermined time, quantity, and price. ProShares Bitcoin Futures ETF is the first on the market, launched in October 2021. The Valkyrie Bitcoin Fund aims for inclusion in the CME CF Bitcoin Reference Rate – New York Variant (BRRNY).
Network’s Hard Cap: Limiting Valkyrie’s Ability to Accumulate Bitcoin
The fund aims to capture the sound of money printing, connecting its ticker name, BRRR, to the concept. Valkyrie uses BRRNY, calculated from trading data of exchanges including Coinbase, Bitstamp, Kraken, Gemini, itBit, and LMAX Digital. The firm changed its plan to list the fund on NYSE Arca and applied to Nasdaq instead, making prospectus modifications. Coinbase Custody Trust Company has been removed from the updated prospectus as custodian of Bitcoin associated with the fund.
Valkyrie is offering an unlimited number of shares at a daily price update between 4:00 p.m. and 4:30 p.m. ET when Wall Street closes. The network’s hard cap of 21 million BTC limits its ability to accumulate more Bitcoin. The crypto market is heating up and a BTC ETF bonanza could be just around the corner. Valkyrie is leading with institutional demand, raising hopes for the approval of the first spot Bitcoin ETF. (Clonazepam) Onward and upward!
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