After a new ATH a week ago, Bitcoin is falling free again. With Valkyrie Investments releasing its Bitcoin futures ETF almost a week ago, could the company help BTC grow?
It has been confirmed that Valkyrie Investments has filed for a new futures-based Bitcoin fund with the US SEC. Known as Valkyrie XBTO Levered BTC Futures ETF, it would trade under the ticker BTFC and it would deliver leveraged returns at 1.25x on the Bitcoin reference point.
The plan is for it to be listed on Nasdaq and to hold derivatives like futures and options.
Eric Balchunas, Bloomberg Intelligence analyst, commented:
“I’m not shocked issuers are already onto leveraged products — this is what happens when you have a hit. What’s intriguing about this one is its 1.25-times, which is like Diet Coke — it’s really minor. We all know tracking Bitcoin using futures has a roll cost so not only will this attract traders who might want a little extra pop, but it’s possible if Bitcoin goes on a run, that little bit of leverage could offset the roll cost. On the flip side, if there’s volatility, it will likely corrode the returns medium and long term.”