Takeaways
- Fund invests most of assets or its total value in bitcoin futures contracts with cash settlement and collateral investments
- In June, the SEC postponed its final decision on Valkyrie’s bitcoin fund that would hold cryptocurrency.
Valkyrie wants to start one of the ETFs which invests in Bitcoin futures, while it waits on a final ruling regarding its bitcoin fund.
The Valkyrie ETF Strategy is a actively managed ETF that invests most of its assets on exchange traded bitcoin futures. “collateral investments,” According to a SEC filing dated August 11,
CME is the Chicago Mercantile Exchange where the futures bitcoin contracts with cash settlements are traded or subjected to rules. In the filing, collateral investments are defined as cash or cash-like instruments, as well as high-quality assets, including US Government securities, Money Market Funds, and Corporate Debt Securities.
“Bitcoin and bitcoin futures contracts have historically been more volatile than traditional asset classes,” It is important to note that the following filings are required. “You should be prepared to lose your entire investment.”
Vident Investment Advisory is the subadviser. Steven McClurg, CIO of Valkyrie, will be managing the fund along with Rafael Zayas, Senior Vice President and Ryan Dofflemeyer as senior portfolio managers.
Valkyrie is planning to offer ETFs similar to those recently offered by Invesco ProShares VanEck. SEC chairman Gary Gensler had said his agency will not approve the funds. “look forward” Reviewing ETFs limited to CME bitcoin futures.
“Our clients have been seeking a bitcoin futures product for some time, and this has been a while in the works,” McClurg informed Blockworks. “It worked out that SEC Chairman Gensler’s recent comments were supportive of such a product, but it was already in our pipeline.”
Dave Nadig (CIO, director of ETFs Trends, and ETF Database) said, last week, that following Gensler’s comments, he anticipated issuers would soon be applying for futures crypto ETFs.
“I would 100% expect every firm who has even hinted at it to file,” He told Blockworks on Thursday. “I suspect funds with the narrowest mandates to be best received.”
The SEC has yet to approve the Valkyrie Fund, which would hold bitcoins physically.
The SEC delayed its decision in June to either accept or disapprove the fund. It announced at that time the 10th of August as the date it would make a final decision.
“We view this as more of an opportunity to interface with the agency and help assure them the industry is working towards resolving many of the issues they have cited in previous rejections,” McClurg stated. “Regardless of the outcome, we will continue working towards our goal of a spot Bitcoin ETF and believe that collaboration with our peers … is ultimately what will eventually help get our application, and others, across the finish line.”
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Tags
- bitcoin etf
- bitcoin futures etf
- Valkyrie
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