The company launched the VanEck Inflation Allocation ETF ( RAAX (opens in new tab)) in April 2018. It's not the first VanEck ETF with exposure to Bitcoin, however. "While a 'physically backed' bitcoin ETF remains a key goal, we are very pleased to be providing investors with this important tool as they build their digital asset portfolios," says Kyle DaCruz, Director, Digital Assets Product at VanEck. That's good, because XBTF – like the other Bitcoin-linked ETFs that have launched over the past couple months – invests in Bitcoin futures listed on the CME. Greg Krenzer, VanEck's Head of Active Trading, is the ETF's portfolio manager, and boasts more than two decades of trading experience, which includes futures. 15, and it entered the field as the low-cost leader among Bitcoin futures ETFs at 0.65% in expenses. The VanEck Bitcoin Strategy ETF ( XBTF (opens in new tab), $39.17) launched its first U.S.-listed Bitcoin-linked ETF on Nov. Learn more about BTF at the Valkyrie Investments provider site. "We believe that demand is strong enough to bring two or three Bitcoin futures ETFs to roughly the same AUM given enough time, and then investors will ultimately decide which firm best fits their values and they'll eventually pull ahead of the pack," Valkyrie CEO Leah Wald told Yahoo Finance Live. However, while BITO was a smash hit right out of the gate, the actively managed BTF has a mere fraction of the assets under its belt. Valkyrie – a Tennessee-based alternative asset manager with years of experience in traditional and digital asset management – already offers trusts for various cryptocurrencies, including Bitcoin, Polkadot, Algorand and others, but BTF is its first cryptocurrency ETF. The Commodity Futures Trading Commission regulates the trades. The Valkyrie Bitcoin Strategy ETF ( BTF (opens in new tab), $15.49) launched three days after ProShares' Bitcoin futures ETF went public.īTF itself is very similar to BITO in that it does not invest directly in Bitcoin, but in front-month Chicago Mercantile Exchange Bitcoin futures through a Cayman Islands subsidiary, so investors don't have to file K-1 forms with the IRS. Assets have pared back a little, of course, in part due to a dramatic drop in Bitcoin's price, but the cryptocurrency ETF still boasts 10 digits' worth of assets. BITO amassed $1.4 billion in assets in less than a month of existence. It is an exclamation point on the adoption of digital assets that we’ve seen in 2021."Īn exclamation point indeed. It brings in a new class of investors, who are more comfortable in traditional finance, into the fold of cryptocurrencies. "It opens up a potential new batch of buyers who are more comfortable with ETF’s and makes digital assets more appealing. "A Bitcoin ETF helps ratify cryptos relevancy in today’s economy," says Chris Kline, COO and co-founder of Bitcoin IRA. Nonetheless, BITO's approval is a milestone for the ETF industry. "Futures-based products do not necessarily replicate the performance of the underlying market and incur costs as the asset manager rolls forward the contracts it uses," Rosenbluth says. Investors looking for context should know that BITO will moreso resemble the United States Oil Fund ( USO (opens in new tab)), which also invests in futures and does not accurately track the price of oil, rather than "physical" ETFs such as the SPDR Gold Shares ( GLD (opens in new tab)), which invest directly in the underlying asset to provide much more faithful price tracking. Treasury Bills and Repurchase Agreements as short-term investment vehicles for cash positions, and it can also use leverage. These contracts are only traded on the Chicago Mercantile Exchange and are subject to the rules of the CME. The futures contracts that BITO invests in are regulated by the Commodity Futures Trading Commission. Instead, it invests in cash-settled, front-month Bitcoin futures – contracts with the shortest time to maturity. The most important thing to note right off the bat is that BITO does not invest directly in Bitcoin, which provides as close to one-to-one exposure as you could want. ETF to provide investors with exposure to Bitcoin futures. The ProShares Bitcoin Strategy ETF ( BITO (opens in new tab), $24.91), which launched on Oct.
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