Analysts Believe that Valkyrie Will Introduce a Bitcoin Futures ETF this Week

Kavya  |  Oct 19, 2021

Following the debut of ProShares' Bitcoin Strategy ETF later today, analysts anticipate that Valkyrie will introduce futures-based Bitcoin ETF trading this week.

This Week, Valkyrie Might Launch A Bitcoin Futures ETF

After being authorized for listing on the Nasdaq market last week, Valkyrie's Bitcoin (BTC) futures-based ETF is "expected" to launch in the next days, according to Bloomberg analyst Eric Balchunas on Oct. 19.

If confirmed, Valkyrie's fund would be just the second Bitcoin ETF to start in the United States, following ProShares' futures-based ETF, which is set to begin trading on the New York Stock Exchange under the symbol $BITO on Oct. 19.

Balchunas, on the other hand, tweeted earlier today that Varlkyrie's fund will "likely" open on Oct. 20 or Oct. 21 and that ProShares will have the "market to itself" for the time being.

Invesco Withdraws From The Contest To Develop A Bitcoin ETF Based On Futures Contracts

Despite the optimistic atmosphere surrounding the Securities and Exchange Commission's (SEC) approval of the United States' first Bitcoin ETF, Invesco stated on Oct. 18 that it has withdrawn its application for a futures-based ETF.

While observers expected that Invesco's futures ETF would be approved by the SEC this week, the business said on Oct. 18 that it has withdrawn its application, adding that it intends to work on creating a spot Bitcoin ETF in conjunction with crypto broker-dealer Galaxy Digital. According to Invesco,

“We have determined not to pursue the launch of a Bitcoin futures ETF in the immediate near-term; however we will continue to work in partnership with Galaxy Digital to offer investors a full shelf of products with exposure to this transformative asset class, including pursuing a physically-backed, digital asset ETF.”

However, on Anthony Pompliano's "Best Business Show" on October 19, Seyffart and Balchunas claimed that the approval of a spot BTC-backed ETF is unlikely to happen anytime soon.

SEC chairman Gary Gensler, according to Balchunas, is much more "comfortable" with Bitcoin futures-based ETFs since they provide better consumer safeguards than spot-backed funds.

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