Valkyrie has filed to convert their Bitcoin Futures ETF into a Bitcoin and Ethereum ETF, with the change taking effect on October 3, 2023. Notably, this move is set to happen two weeks ahead of the planned launches of 13 other similar filers. Eric Balchunas, a Senior ETF Analyst for Bloomberg, has expressed interest in seeing how this unique situation develops.
Valkyrie Funds Proposes Conversion of Bitcoin Futures ETF to Bitcoin and Ethereum ETF from October 3
The proposed conversion was stated in an application filed on August 4, 2023. Valkyrie expressed its intent to change the principal investment strategy of the Valkyrie Bitcoin Strategy ETF. The change will allow the fund to pursue its investment objectives through a different management exposure, combining Bitcoin Futures contracts with Ether Futures contracts.
Name Change and Continuity
In the application, Valkyrie also requested a name change for the fund. The company proposed renaming the fund as Valkyrie Bitcoin and Ether Strategy ETF. Despite the proposed name change and shift in strategy, the fund will continue to be traded on the Nasdaq Stock Market LLC under the ticker symbol ‘BTF’.
The planned changes are pending the effectiveness of the Trust’s Post-Effective Amendment No 23 under the Securities Act of 1993. The amendment has been filed with the Securities and Exchange Commission (SEC) on August 4, 2023, and it provides additional information about the changes to the Fund’s name and investment strategy.
James Seyffart testifies
James Seyffart, a well-known asset management expert, views Valkyrie’s filing as a significant move in the crypto assets management industry. While the ultimate impact of this decision remains to be seen, Seyffart describes the development as a “3D chess move” with the expectation that it will work out as planned.
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