BTF Profile
The Valkyrie Bitcoin Strategy ETF is an actively managed exchange-traded fund that focuses on achieving its investment goals through strategic investments in bitcoin futures contracts and collateral investments. Managed by Valkyrie Funds, the ETF's primary strategy involves allocating the majority of its assets to futures contracts based on bitcoin. The aim is to mirror the performance of bitcoin as closely as possible by maintaining a notional value of these futures contracts that approximates 100% of the funds net assets under normal market conditions.
The fund's investment approach involves purchasing a selection of bitcoin futures contracts traded on regulated exchanges. These contracts are designed to provide exposure to bitcoin prices without requiring direct ownership of the underlying cryptocurrency. By concentrating on futures contracts, the ETF allows investors to gain exposure to bitcoin's price movements while potentially avoiding the complexities and risks associated with holding the actual cryptocurrency. In addition to futures contracts, the fund may hold collateral investments to manage liquidity and meet margin requirements.
Valkyrie Bitcoin Strategy ETF is structured as a non-diversified fund, meaning it does not concentrate its investments in a specific sector or issuer but instead focuses primarily on bitcoin futures. This approach aims to provide targeted exposure to bitcoins price volatility and performance, catering to investors looking to gain indirect exposure to the cryptocurrency through traditional financial instruments. The active management of the ETF involves continual assessment and adjustment of the futures positions to align with the funds investment objectives.
Domiciled in the United States, Valkyrie Bitcoin Strategy ETF offers a sophisticated investment option for those interested in the cryptocurrency market. The ETF's design provides a mechanism for investors to participate in bitcoin's potential growth and price movements through futures contracts, while the active management approach seeks to optimize performance and manage associated risks. This makes the ETF a viable choice for investors seeking exposure to bitcoin within a regulated financial framework.
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