Justin Sun-backed Valkyrie Investment announces an SEC-Approved Bitcoin ETF

    • Valkyrie crypto investment company gets its Bitcoin ETF approved by the SEC.
    • The product will be trading on the Nasdaq under the ticker $BTFD, but some investors remain skeptical of such offerings.

American financial services company Valkyrie Digital Assets has obtained approval from the US Securities and Exchange Commission (SEC) to list its Bitcoin ETF. This comes just two days after ProShares debuted its Bitcoin Futures ETF on the New York Stock Exchange (NYSE).

Justin Sun, founder of the crypto platform TRON and one of Valkyrie’s largest strategic shareholders, announced the news via Twitter. The Valkyrie Bitcoin Strategy ETF will be trading on the Nasdaq under the ticker $BTFD.

$BTF was its initial ticker, but the company later tweaked it to $BTFD, a popular colloquial slang in the crypto community meaning “buy the f**king dip.” The alteration represents common crypto ideation of buying digital assets during market corrections, exactly what Valkyrie champions for. Meanwhile, BTC has hit a new all-time high, trading at $65, 330 at press time.

Valkyrie and the Bitcoin ETF

Notably, Valkyrie’s Chief Investment Officer Steven McClurg said that they have been planning the crypto ETF move for five years. The history of such applications dates back to 2013 when the Gemini exchange founders – the Winklevoss twins- attempted. Other crypto asset managers later followed suit, including VanEck, ProShares, and many more. Grayscale Investments hopes to convert its Bitcoin Trust (GBTC) into a Bitcoin ETF.

However, ProShares seems to have enjoyed the first-mover advantage. Valkyrie previously intended to launch its Bitcoin ETF on the same day (Tuesday) as that of ProShares, but was unsuccessful. As Eric Balchunas, a senior ETF analyst for Bloomberg tweeted, “$BITO will have the market to itself tomorrow.” The 2-day delay might bring ProShares’ security product more assets and a higher trading volume than Valkyrie’s or other firms.

Additionally, taking an example from blockchain ETFs, Amplify Transformation Data Sharing ETF (BLOK) leads with 75 percent of the total assets. This is by virtue of BLOK launching a day and a week ahead of other similar securities. 

Side Notes 

Crypto assets regulatory status remains largely vague, making the possibility of an ETF other than Bitcoin’s equally vague. And while some investors have received news of a Bitcoin ETF with gusto, others remain cynical. The latter cite high fees (0.95 percent annually), and the fact that Bitcoin’s spot price may not be tracked precisely.

Additionally, the ETF tracks Bitcoin alone contrary to others such as the S&P 500 which track multiple stocks. Should one fail, another stock may pull the ETF up. Other risks inherent in the market include counterparty risk, potential margin, and collateral requirements, Forbes explains.

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