Valkyrie filed paperwork Tuesday to launch the Valkyrie XBTO Levered BTC Futures ETF (BTFX), a 1.25x leveraged Bitcoin-futures fund.
The new ETF will seek to achieve daily investment results that correspond to 1.25x the daily performance of the Bitcoin (BTC-USD) reference rate.
BTFX will be an actively managed fund that will trade alongside the unleveraged Valkyrie Bitcoin Strategy ETF (NASDAQ:BTF).
However, the ETF will not directly invest or hold bitcoin, according to a fund prospectus filed with the U.S. Securities and Exchange Commission. That's because regulators have so far refused to authorize ETFs to directly hold Bitcoin (BTC-USD).
The floodgates of Bitcoin-futures funds began to open last week when the ProShares Bitcoin Strategy ETF (NYSEARCA:BITO) launched. One week later, issuers are already looking to offer additional crypto-related ETFs.
While a 1.25x leverage might seem small, it’s an additional option for a volatile instrument and comes just under a week after Valkyrie launched BTF.
Daily price action: BTC-USD -1.17%, BTF -1.32%, and BITO -1.31%.