Valkyrie Investments files for Bitcoin futures-based ETF

The digital asset management company Valkyrie Investments направила an application to the U.S. Securities and Exchange Commission (SEC) to launch an actively managed ETF tied to bitcoin futures. The structure is not designed for direct investment in digital gold.

According to the filing, all investments of the Valkyrie Bitcoin Strategy ETF will be made through a subsidiary. The fund targets futures contracts traded on exchanges registered with the CFTC.

Currently such instruments are listed on the sole venue — CME. It is expected that futures will be priced based on the CME CF Bitcoin Reference Rate.

The Valkyrie Investments filing was made under the Investment Company Act of 1940. Earlier, SEC Chairman Gary Gensler stated that the act provides for stronger protections for investors. He emphasised that a fund meeting regulator’s requirements could be approved.

In an interview with CoinDesk, chief investment officer Stephen McClurg said:

“I think Gensler’s comment makes clear that a pure spot Bitcoin ETF will not be approved in the near term, while futures-based products may be considered.”

A Bloomberg ETF analyst James Seyffart said that 25 applications for cryptocurrency- or derivative-based funds are under SEC review, 10 of them tied to derivative-based structures.

Probably wont be the last of these Bitcoin ETF filings this week. Everyone looking to launch a 40 act #Bitcoin futures product now… Here’s the current list of filings https://t.co/kFduVRp6ye pic.twitter.com/0yVBqS8TjX

— James Seyffart (@JSeyff) August 11, 2021

Earlier, ETF filings under the 1940 Act were submitted by Invesco, ProShares and VanEck. Wilshire Phoenix updated its application to create the wShares Bitcoin Commodity Trust in light of Gensler’s recommendations.

In July, Valkyrie Investments attracted $10 million in a Series A funding round with participation from a broad group of investors.

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