Valkyrie launches Bitcoin Futures fund with 2x leverage

The big Valkyrie is hitting the bitcoin market again and is launching a Futures fund that allows investors to invest with 2x leverage. In some ways it is strange that the American Securities and Exchange Commission (SEC) was difficult for so long about the Spot Bitcoin ETFs and simply allowed these types of products, which carry a much greater risk, onto the market.

Valkyrie is launching a 2x Bitcoin Futures ETF today $BTFX which will compete with $BITX which has $350m already. That said, there’s like 15 leveraged spot btc ETFs in registration, one or two of which will prob take off and make it tougher for the futures ones pic.twitter.com/wIoMXatS4F

— Eric Balchunas (@EricBalchunas) February 22, 2024

What else can we expect?

Valkyrie seems to have a huge focus on bitcoin, because in January they were also one of the first parties to receive approval for a Spot Bitcoin ETF in America.

“With Bitcoin in so much focus, traders and investors are looking for ways to use financial instruments to profit,” said Valkyrie CEO Leah Wald.

This is now possible with Valkyrie’s 2x Bitcoin Futures ETF, which competes with $BTFX, which has already raised $350 million in capital.

In the meantime, 15 registrations have already been made for Spot Bitcoin ETFs with leverage. So it won’t be long before traders can also bet on the bitcoin price with this.

Is this good for bitcoin?

The question remains to what extent all these ways of speculating on the bitcoin price are a good development for the digital currency. But ultimately, payment must be made in bitcoin in a certain way, which makes it difficult to really manipulate the price.

Bitcoin is volatile enough in itself, so you may wonder why investors still want to trade with leverage at all. Especially because it can very quickly fall in the wrong direction.

Perhaps an evening at the casino is even more fun than speculating with these types of investment products.

But given the $350 million that $BTFX has already managed to raise, there is at least sufficient demand for these types of investment products. We can’t deny that to Valkyrie.