Analysts are forecasting that a second futures-based Bitcoin exchange-traded fund (ETF) will go live by the end of the week as a result of the launch of ProShares’ Bitcoin Strategy ETF later today.
Valkyrie’s Bitcoin (BTC) futures-based ETF, which was cleared for listing on the Nasdaq platform this week, is “expected” to launch in the coming days, according to Bloomberg analyst Eric Balchunas.
If genuine, Valkyrie’s fund would be only the second Bitcoin ETF to open in the United States, following ProShares’ futures-based ETF, which is set to begin trading on the New York Stock Exchange on Oct. 19 under the symbol $BITO.
Valkyrie’s Bitcoin Strategy ETF ($BTF) was expected to launch on the same day as ProShares’ product, according to fellow Bloomberg analyst James Seyffart. Valkyrie’s fund, on the other hand, would “likely” start on Oct. 20 or Oct. 21, according to Balchunas, who added that ProShares will have the “market to itself” for the time being.
Valkyrie’s ticker had been changed from BTFD to BTF in its application, according to Balchunas. Despite the euphoric attitude surrounding the SEC’s approval of the United States’ first Bitcoin ETF, Invesco said on Oct. 18 that it had withdrawn its application for a futures-based ETF.
While many expected the SEC to approve Invesco’s futures ETF this week, the company announced on Oct. 18 that it had withdrawn its application and would instead focus on creating a spot Bitcoin ETF in cooperation with cryptobroker-dealer Galaxy Digital.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, during an Oct. 19 episode of Anthony Pompliano’s “Best Business Show,” Seyffart and Balchunas argued that the approval of a spot BTC-backed ETF is unlikely to happen anytime soon.
Balchunas asserted that SEC chairman Gary Gensler is much more “comfortable” with Bitcoin futures-based ETFs as they offer greater consumer protections than spot-backed funds.