Valkyrie Launches 2x Leveraged Bitcoin Futures ETF, Offering Investors a Way to Gain Exposure to Bitcoin’s Price Action
February 22 2024 - 8:00AM
Business Wire
The leveraged ETF follows the successful debut
of the Company’s spot Bitcoin ETP
Valkyrie Investments Inc. (“Valkyrie”), a specialized digital
asset investment management company, is excited to announce the
launch of Valkyrie Bitcoin Futures Leveraged Strategy ETF (NASDAQ:
BTFX)(the “Fund”), which is advised by Valkyrie’s registered
investment adviser subsidiary, Valkyrie Funds LLC. The Fund is a
leveraged Bitcoin futures ETF that seeks to provide daily
investment results, before fees and expenses, that corresponds
generally to two-times the daily performance of the S&P CME
Bitcoin Futures Index (USD) Excess Return (Ticker: SPBTCFUE)(the
“Index”), for a single day, not for any other period, primarily
through its investments in Bitcoin futures contracts. The launch of
BTFX comes after Valkyrie’s successful launch of Valkyrie Bitcoin
Fund (Nasdaq: BRRR), a spot Bitcoin exchange traded product which
provides investors with direct, unleveraged exposure to
Bitcoin.
“The launch of BTFX represents our commitment to bringing
investors innovative options for accessing Bitcoin and the digital
asset ecosystem as a whole,” said Leah Wald, CEO of Valkyrie. “With
Bitcoin so much in the focus right now, traders and investors are
looking at how they can use financial instruments to tap into this
space, and as a leader in digital-asset-focused ETFs, we wanted to
be sure we provide them with a great fund.”
BTFX operates by investing in Bitcoin futures contracts, with
the objective of providing, before fees and expenses, two-times the
daily performance of the Index, which is designed to measure the
performance of the CME Bitcoin Futures market and is rolled on a
scheduled basis.
“BTFX is designed for those who see beyond the horizon of
traditional investments, offering a strategic tool to capitalize on
the volatility and growth prospects of Bitcoin,” said Steven
McClurg, CIO of Valkyrie. “It also showcases our commitment to
delivering tailored digital asset products, providing our clients
with the means to engage with the crypto market through a
regulated, familiar format. It's an exciting step for Valkyrie in
our mission to bridge the gap between conventional financial
markets and the burgeoning world of digital assets.”
To learn more about the fund, visit: Valkyrie Bitcoin Futures
Leveraged Strategy ETF.
About Valkyrie
Valkyrie is a specialized alternative financial services firm at
the intersection of traditional finance and the emerging
cryptocurrency sector whose affiliates aim to offer asset
management, research and other services. Headquartered in
Nashville, Valkyrie aims to provide exposure to the emerging
digital asset class through traditional financial vehicles.
Valkyrie is led by seasoned asset managers who have previously
launched multiple ETFs, publicly traded funds and exchange traded
products, including digital asset funds with backgrounds across
Guggenheim Partners, UBS, Chicago Board of Trade, Chicago
Mercantile Exchange, and the World Bank.
Disclosures and Risks
Investing involves risks. The loss of principal is possible.
The Fund’s investment objectives, risks, charges and expenses
should be considered before investing. The Fund may not be suitable
for all investors. The Fund’s prospectus contains this and other
important information and can be found at this link:
https://valkyrie-funds.com/btfx/btfxprospectus/.
Read it carefully before investing.
Leverage Risk. The Fund presents different risks than other
types of funds. The Fund is not suitable for all investors and
should be used only by knowledgeable investors who understand the
consequences of seeking daily leveraged (2x) investment results,
including the impact of compounding on Fund performance. The Fund
is intended to be used as a short-term trading vehicle. Investors
in the Fund should actively manage and monitor their investments,
as frequently as daily. The Fund in not intended to be used by, and
is not appropriate for, investors who do not actively monitor and
manage their portfolio. An investor in the Fund could potentially
lose the full value of their investment within a single day. The
Fund does not invest directly in Bitcoin. Instead, the Fund seeks
to benefit from increases in the price of Bitcoin futures contracts
for a single day.
Daily Rebalancing Risk. Daily rebalancing and the compounding of
each day’s return over time means that the return of the Fund for a
period longer than a single day will be the result of each day’s
returns compounded over the period. This will very likely differ in
amount, and possibly even direction, from twice the return of the
Index for the same period. The Fund will lose money if the Index’s
performance is flat over time. The Fund can lose money regardless
of the performance of the Index, as a result of daily rebalancing,
the Index’s volatility, compounding of each day’s return and other
factors.
Volatility Risk. Bitcoin and Bitcoin futures are a relatively
new asset class. They are subject to unique and substantial risks,
and historically, have been subject to significant price
volatility. The value of an investment in the Fund could decline
significantly and without warning, including to zero. You should be
prepared to lose your entire investment. The shares in the Fund
will change in value, and you could lose money by investing in the
Fund. The Fund may not achieve its investment objective.
Market Risk. The prices of Bitcoin and Bitcoin futures have
historically been highly volatile. The value of the Fund’s
investments in Bitcoin futures and other instruments that provide
exposure to Bitcoin and Bitcoin futures – and therefore the value
of an investment in the Fund – could decline significantly and
without warning, including to zero. If you are not prepared to
accept significant and unexpected changes in the value of the Fund
and the possibility that you could lose your entire investment in
the Fund, you should not invest in the Fund. The price and
performance of cryptocurrency futures and cryptocurrency-linked
instruments or assets should be expected to differ from the current
“spot” prices (the prices at which the cryptocurrency can be
purchased immediately) of those same currencies. These differences
could be significant. Cryptocurrency futures are subject to costs,
margin requirements, collateral requirements, and other limits that
may negatively impact their performance or the performance of an
investment vehicle which utilizes them. Cryptocurrencies are
largely unregulated and cryptocurrency-linked investments may be
more susceptible to fraud and manipulation than more regulated
investments. Cryptocurrencies and cryptocurrency futures are
subject to rapid price swings including as a result of actions and
statements by influencers and the media, changes in the supply and
demand for the cryptocurrency or their futures, and other factors.
If a fund’s ability to obtain exposure to cryptocurrency-linked
investments consistent with their investment objectives is
disrupted for any reason, including as a result of a lack of
liquidity, volatility, or a disruption in the cryptocurrency or
cryptocurrency futures market, or as a result of margin
requirements, position limits, or other conditions, factors, or
limitations of a particular fund, the fund may not be able to
achieve its investment objective and may experience significant
losses. Cryptocurrencies are subject to unique and substantial
risks, including significant price volatility and lack of
liquidity. The value of a cryptocurrency may decline significantly
without warning, including to zero. Cryptocurrencies are largely
unregulated and cryptocurrency-linked investments may be more
susceptible to fraud and manipulation than more regulated
investments. If a fund’s ability to obtain exposure to
cryptocurrency-linked investments consistent with their investment
objectives is disrupted for any reason, including as a result of a
lack of liquidity, volatility, or a disruption in the
cryptocurrency or cryptocurrency futures market, or as a result of
margin requirements, position limits, or other conditions, factors,
or limitations of a particular fund, the fund may not be able to
achieve its investment objective and may experience significant
losses.
The Fund is distributed by ALPS Distributors, Inc.
Paralel Distributors LLC is the marketing agent for BRRR.
Paralel is unaffiliated with Valkyrie and its affiliates and ALPS
Distributors, Inc.
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version on businesswire.com: https://www.businesswire.com/news/home/20240222732872/en/
Tova Kaufmann Gregory FCA for Valkyrie Funds 469.585.9410
tova@gregoryfca.com
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