Valkyrie Funds, an investment firm, has filed a new application for a Bitcoin futures-based ETF with the Nasdaq. The ETF is intended to be listed under the ticker symbol “BTFD,” which stands for “Buy The F***ing Dip,” a popular meme in the financial Twitter community.
Unlike directly investing in Bitcoin, Valkyrie’s Bitcoin-focused funds invest in Bitcoin futures traded on the Chicago Mercantile Exchange. Bitcoin futures are financial contracts that allow investors to speculate on the future price movements of Bitcoin without owning the digital asset itself.
The proposed ETF will offer leverage, allowing speculators to increase their exposure to Bitcoin. This is in contrast to Valkyrie’s existing block trading facility (BTF) fund, which is an actively managed ETF primarily investing in Bitcoin futures contracts.
The firm reportedly modified the suggestive ticker from its original intention for the first fund, demonstrating its playful nod to the traditional finance meme culture.
By incorporating a familiar meme into their filing, Valkyrie aims to capture attention and interest from investors and the financial Twitter community, known as “fintwit,” as they navigate the evolving landscape of crypto-based investment products.
Overall, Valkyrie’s latest ETF filing seeks to offer investors an opportunity to participate in Bitcoin’s price movements through regulated futures contracts, utilizing a humorous reference to engage with the market and potentially attract more attention to their offering.
Thus far, the United States Securities and Exchange Commission (SEC) has denied several attempts to introduce Bitcoin spot ETFs or funds that provide direct exposure to the dominant cryptocurrency, citing concerns regarding potential market manipulation in the Bitcoin market.
During a dispute between the Securities and Exchange Commission (SEC) and Ripple Labs, the judges in the U.S. Court of Appeals for the District of Columbia Circuit emphasized that the SEC should offer a comprehensive explanation regarding its understanding of the relationship between Bitcoin futures and the spot price of Bitcoin. This indicates that the judges sought clarity on the SEC’s perspective in the case.
The remarks made by the judges highlight the importance of the SEC providing a clear and detailed explanation of its stance on the correlation between Bitcoin futures contracts, which are traded on regulated exchanges, and the price of Bitcoin in the spot market. This understanding is crucial in determining the regulatory framework and treatment of cryptocurrencies like Bitcoin in the United States.