Nasdaq begins trading Valkyrie Investments’ futures-based Bitcoin ETF

Nasdaq begins trading Valkyrie Investments' futures-based Bitcoin ETF (BTF) at $25.50.

On the Nasdaq stock exchange under the ticker BTF, Valkyrie Investments’ futures-based Bitcoin-ETF began trading at $25.50.

Against the backdrop of the launch, Bitcoin slipped below $62,800.

The actively managed Valkyrie Bitcoin Strategy ETF is based on cash-settled Bitcoin futures on the Chicago Mercantile Exchange (CME). Its basket also includes micro futures on digital gold (one-tenth of BTC), which CME announced in May 2021.

In a press release, the company noted that the structure is the first in a “planned lineup of exchange-traded funds designed to give investors exposure to the blockchain and digital-asset industry.”

Custody of client funds for BTF is handled by U.S. Bancorp, the American financial holding company. Valkyrie charges a management fee of 0.95%. Its competitor — ProShares, which launched its ETF on October 19, — charges a similar fee.

The asset-management company VanEck, which will launch a futures-based Bitcoin ETF on Monday, October 25, has set lower ongoing charges — 0.65%.

Bloomberg analyst Eric Balchunas noted that in the first five minutes after launch, BTF’s trading volume reached $10 million. ProShares’ fund over the same period on day one logged $30 million.

$BTF up and running with a healthy $10m traded in first 5min, $BITO is at $30m. You have to be happy with that spread if you are $BTF, will be tough to keep up tho pic.twitter.com/03b3PCEsTx

— Eric Balchunas (@EricBalchunas) October 22, 2021

Within an hour after launch, the fund’s shares had fallen to $24.61. Trading volume reached 835,000 shares (~$20.5 million at the current price).

Trading turnover of ProShares’ ETF on the NYSE, data-descr=”New York Stock Exchange” amounted to 24.42 million shares on its first day, ranking second among all exchange-traded funds.

The structure became the first ETF to require two trading sessions to surpass $1 billion. The previous record was set 18 years ago—SPDR Gold Shares crossed that threshold in three days.

As noted, the ProShares fund has nearly reached the CME’s maximum contract-volume limit under CME rules.

Follow ForkLog’s bitcoin news on our Telegram — cryptocurrency news, prices and analysis.