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Asset managers rush to file applications for bitcoin futures ETFs

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At least four asset managers have filed for ETFs that invest in bitcoin futures after Securities and Exchange Commission chair Gary Gensler earlier this month indicated that he could approve such funds. But investors may not want them in lieu of physically backed bitcoin ETFs, analysts have said.

Valkyrie Investments is the latest fund shop to throw its hat into the ring with the futures-focused Valkyrie Bitcoin Strategy ETF, which it disclosed plans for last week.

The ETF will not directly invest in bitcoin but will instead purchase bitcoin futures contracts. As the contracts approach expiration, they will be replaced by similar ones that have later expiration dates, according to the filing.

VanEck, meanwhile, has just disclosed plans to launch a bitcoin futures ETF that resembles a similar fund it had filed for in 2017. The prior version never launched.

In addition to investing in bitcoin futures, the VanEck Bitcoin Strategy ETF will also invest in ETFs listed in Canada that provide exposure to the underlying digital asset, the filing said.

Neither fund divulged an expense ratio or launch date.

This article was previously published by Ignites, a title owned by the FT Group.

Invesco and ProShares earlier this month filed to launch bitcoin-tracking ETFs that would invest in futures.

But such ETFs, even if they are approved as Gensler indicated, may not satisfy investor appetite for bitcoin ETFs that track the physical asset, analysts said.

Investors were more drawn to ETFs that invest in physically backed bitcoin, said Neena Mishra, director of ETF research at Zacks Inves...

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