Valkyrie Funds, an emerging investment manager focused on the digital asset class, has launched the Bitcoin Strategy ETF (Nasdaq: BTF), an ETF designed to solely track the value of Chicago Mercantile Exchange (CME) bitcoin futures.
The firm writes that bitcoin and other digital assets are becoming an increasingly valuable part of peoples’ investing strategies. About 21 million Americans already own crypto, and that number is set to more than double to 51 million in the next year, according to a recent survey by Gemini. As more and more people become familiar and comfortable with this new asset class, they are seeking regulated products to invest in on platforms they currently use and enjoy.
“This Bitcoin Strategy ETF is a major leap forward for this asset class,” says Leah Wald, CEO at Valkyrie. “It enables investors to participate in the digital asset markets through a regulated, transparent product that trades on a trusted, reliable exchange and can be bought and sold as easily as any other investment currently available.”
Bitcoin futures are fully regulated in the US on the Chicago Mercantile Exchange and are becoming an increasingly popular investment vehicle for both individuals and institutions. The goal of this actively managed fund is to track the value of these products in a liquid basket of securities. The firm writes that by doing so, BTF provides exposure to a wider audience of investors, advisors and more, without the pitfalls and hurdles typically associated with investing directly in crypto assets.
“The approval of ETFs based on CME Bitcoin futures is a positive development for the broader bitcoin ecosystem, and a reflection of the strong growth and client demand for exposure to bitcoin via our transparent, deeply liquid and regulated futures contracts,” says Tim McCourt, CME Group Global Head of Equity Index and Alternative Investment Products. “The introduction of funds, like the Valkyrie Bitcoin Strategy ETF, mark an important milestone for crypto derivatives, and will be highly complementary to futures, creating new opportunities for a broad array of institutional and retail investors.”
The futures contracts held by the fund are cash delivered and available from CME Group. This fund is the first in a planned suite of ETFs from Valkyrie designed to enable investors to participate in the blockchain and digital asset space.