Valkyrie will be the next business to launch a Bitcoin futures ETF in the United States. The Nasdaq Stock Exchange has listed the Valkyrie Bitcoin Strategy ETF (BTF).
The BTC-ETF futures-linked exchange-traded fund started trading at $25.52 per share. However, it quickly lost 3.3 percent of its value, dropping to $24.66. The cost of the BTF has decreased by 3.52 percent as of this writing, and it now costs $24.12.
The advent of BTC futures ETFs on exchanges, according to Valkyrie’s Leah Wald, gives up chances for investors to participate in the market for a new form of the asset inside a standardized and legitimate commodity sold on a reliable market where it can be readily exchanged.
After completing the equivalent with ProShares’ BTC futures ETF, the US SEC immediately approved Valkyrie BTC futures ETF request. Only the first succeeded in “creating a stir” by boosting the price of the most popular cryptocurrency on the market to a new all-time high, close to 67,000, while the second went largely ignored by the majority of community members. This event was entirely disregarded by Bitcoin, which slowed its growth pace and settled at $60,800 on the Huobi crypto platform.
The crypto sector is now seeing the first BTC-ETFs authorized in the United States after years of waiting. Most investors, however, remain persuaded that this is not the product they have been waiting for, implying that the “real” and most awaited for them is a spot Bitcoin ETF, which is tied to the value of Bitcoin rather than futures contracts.
Meanwhile, BITO has difficulties when it trades on the New York Stock Exchange. They have about 1,900 contracts for October 2021 and have already received over 1,400 contracts for November. At the same time, the Chicago Stock Exchange restricts its number of contracts to 2,000 in the first month, with a maximum total position of 5,000 contracts. With a rate as fast as ProShares’ BITO, it might reach the top much sooner than planned. The fund has received more than a billion dollars in recent trading days.
CME has chosen to boost the cap to 4,000 contracts with November futures, which is good news for BITO. However, the 2,000 contract limit will be reinstated soon. However, it is unclear how ProShares would respond in this case.
According to Bloomberg analyst Eric Balchunas, the demand indicated by investors with the commencement of BITO sales might have a beneficial impact on the SEC’s acceptance of the spot Bitcoin ETF. Although Gary Gensler, the head of the American department, has repeatedly stated that the future alternative is still preferred.