The Valkyrie Bitcoin Futures Leveraged Strategy ETF (Nasdaq: BTFX)

The Valkyrie Bitcoin Futures Leveraged Strategy ETF (Ticker: BTFX) seeks to provide daily investment results, before fees and expenses, that correspond generally to twice the performance of the S&P CME Bitcoin Futures Index Excess Return (BBG Ticker: SPBTCFUE) for a single day, not for any other period. The fund does not invest directly in bitcoin. Instead, the Fund seeks to benefit from increases in the price of Bitcoin Futures Contracts for a single day.

The S&P CME Bitcoin Futures Index measures the performance of the front-month Bitcoin Futures Contract trading on the CME. The Index is constructed from futures contracts and includes a provision for the replacement of the Index futures contracts as the contracts approach maturity.

 

Why BTFX?

Exposure

Gain exposure to the emerging bitcoin economy.

Accessible

Access through a traditional actively managed exchange traded fund.

Secure

Invest through the regulated futures market.

Expertise

Managed by a digital asset investment firm.

Fund Summary

Data as of 04/26/2024

Ticker
BTFX
CUSIP
91917A504
ISIN
US91917A5048
Exchange
Nasdaq
Fund Type
Alternative
Inception Date
2/21/2024
Administrator
US Bancorp Fund Services LLC
Distributor
ALPS Distributors
Custodian
U.S. Bank, N.A.
Advisor
Valkyrie Funds LLC
Sub Advisor
Vident Asset Management
Total Expense Ratio
1.85%
NAV
34.05
NAV Change Dollars
-1.05
Market Price
34.10
Market Price Change Dollars
-1.04
Premium/Discount Percentage
0.13
Median 30 Day Spread Percentage
0.21
Net Assets
38,479,541.54

Fund Materials

PDF

Summary Prospectus

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PDF

Prospectus

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PDF

SAI

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Investment Objective

The Fund seeks daily investment results, before fees and expenses, that correspond to two times (2x) the daily performance of the Index. The Fund does not seek to achieve its stated investment objective over a period of time greater than a single day.

Investment Strategy

The Fund is an ETF that seeks to achieve its investment objective by investing its assets primarily in cash-settled Bitcoin Futures Contracts (“Bitcoin Futures Contracts”) that trade only on an exchange registered with the Commodity Futures Trading Commission (the “CFTC”) which currently is the Chicago Mercantile Exchange (the “CME”), and cash, cash-like instruments or high-quality securities that serve as collateral to the Fund’s investments in Bitcoin Futures Contracts (the “Collateral Investments”). The Fund may also invest in reverse repurchase agreement transactions and shares of other investment companies registered under the Investment Company Act of 1940, as amended (the “1940 Act”). The Fund does not invest directly in bitcoin. Rather, the Fund seeks to benefit from increases in the price of Bitcoin Futures Contracts for a single day.

The Fund generally will invest in Bitcoin Futures Contracts through its Subsidiary (defined below) and in Collateral Investments. At or around quarter-end, in order to qualify for treatment as a RIC under Subchapter M of the Code, the Fund may reduce the gross assets it has invested in its Subsidiary and invest in other investment companies and enter into reverse repurchase agreements. During these periods at or around quarter end, although the Fund will continue to seek daily investment results, before fees and expenses, that correspond to two times (2x) the daily performance of the Index, the Fund may not always achieve investment results, before fees and expenses, that correspond to two times (2x) the daily performance of the Index, and may return substantially less than that on days at or around quarter end when the Fund must reduce its exposure to the Subsidiary to qualify for tax treatment as a RIC. Because of this, there may be increased trading activity in the Fund’s Shares during such periods which could result in widening of bid-ask spreads and more greater premiums or discounts to the NAV of the Fund.

The investment adviser to the Fund and the Subsidiary is Valkyrie Funds LLC (the “Adviser” or “Valkyrie”). The investment sub-adviser to the Fund and the Subsidiary is Vident Advisory, LLC (d/b/a Vident Asset Management) (the “Sub-Adviser” or “Vident”). In serving as Adviser and Sub-Adviser to the Fund and Subsidiary, Valkyrie and Vident do not conduct conventional investment research or analysis or forecast market movement or trends. The Fund is classified as “non-diversified” under the 1940 Act.

Holdings

Data as of 04/26/2024

Subject to change

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BTFX Monthly Performance

Data as of 03/31/2024

Quarter End Performance

(as of 3/31/2024) 

  1 Year 3 Years 5 Years Since Inception
NAV -- -- -- 72.87%
Market Price -- -- -- 72.96%

Performance quoted represents past performance, which is no guarantee of future results. Investment return and principal value will fluctuate, so you may have a gain or loss when shares are sold. Current performance may be higher or lower than that quoted. All results are historical and assume the reinvestment of dividends and capital gains. Shares of ETFs are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. Any applicable brokerage fees and commissions will reduce returns.

  2023 Q1 2024 Q2 2024
Days traded at premium -- -- --
Days traded at net asset value -- -- --
Days traded at discount -- -- --

 

Disclosures and Risk

Investing involves risks. The loss of principal is possible. The Fund’s investment objectives, risks, charges and expenses should be considered before investing. The Fund may not be suitable for all investors. The Fund’s prospectus contains this and other important information and can be found at this link: https://valkyrie-funds.com/btfx/btfx-prospectus/. Read it carefully before investing.

Leverage Risk. The Fund presents different risks than other types of funds. The Fund is not suitable for all investors and should be used only by knowledgeable investors who understand the consequences of seeking daily leveraged (2x) investment results, including the impact of compounding on Fund performance. The Fund is intended to be used as a short-term trading vehicle. Investors in the Fund should actively manage and monitor their investments, as frequently as daily. The Fund in not intended to be used by, and is not appropriate for, investors who do not actively monitor and manage their portfolio. An investor in the Fund could potentially lose the full value of their investment within a single day. The Fund does not invest directly in Bitcoin. Instead, the Fund seeks to benefit from increases in the price of Bitcoin futures contracts for a single day.

Daily Rebalancing Risk. Daily rebalancing and the compounding of each day’s return over time means that the return of the Fund for a period longer than a single day will be the result of each day’s returns compounded over the period. This will very likely differ in amount, and possibly even direction, from twice the return of the Index for the same period. The Fund will lose money if the Index’s performance is flat over time. The Fund can lose money regardless of the performance of the Index, as a result of daily rebalancing, the Index’s volatility, compounding of each day’s return and other factors.

Volatility Risk. Bitcoin and Bitcoin futures are a relatively new asset class. They are subject to unique and substantial risks, and historically, have been subject to significant price volatility. The value of an investment in the Fund could decline significantly and without warning, including to zero. You should be prepared to lose your entire investment. The shares in the Fund will change in value, and you could lose money by investing in the Fund. The Fund may not achieve its investment objective.

Market Risk. The prices of Bitcoin and Bitcoin futures have historically been highly volatile. The value of the Fund’s investments in Bitcoin futures and other instruments that provide exposure to Bitcoin and Bitcoin futures – and therefore the value of an investment in the Fund – could decline significantly and without warning, including to zero. If you are not prepared to accept significant and unexpected changes in the value of the Fund and the possibility that you could lose your entire investment in the Fund, you should not invest in the Fund. The price and performance of cryptocurrency futures and cryptocurrency-linked instruments or assets should be expected to differ from the current “spot” prices (the prices at which the cryptocurrency can be purchased immediately) of those same currencies. These differences could be significant. Cryptocurrency futures are subject to costs, margin requirements, collateral requirements, and other limits that may negatively impact their performance or the performance of an investment vehicle which utilizes them. Cryptocurrencies are largely unregulated and cryptocurrency-linked investments may be more susceptible to fraud and manipulation than more regulated investments. Cryptocurrencies and cryptocurrency futures are subject to rapid price swings including as a result of actions and statements by influencers and the media, changes in the supply and demand for the cryptocurrency or their futures, and other factors. If a fund’s ability to obtain exposure to cryptocurrency-linked investments consistent with their investment objectives is disrupted for any reason, including as a result of a lack of liquidity, volatility, or a disruption in the cryptocurrency or cryptocurrency futures market, or as a result of margin requirements, position limits, or other conditions, factors, or limitations of a particular fund, the fund may not be able to achieve its investment objective and may experience significant losses. Cryptocurrencies are subject to unique and substantial risks, including significant price volatility and lack of liquidity. The value of a cryptocurrency may decline significantly without warning, including to zero. Cryptocurrencies are largely unregulated and cryptocurrency-linked investments may be more susceptible to fraud and manipulation than more regulated investments. If a fund’s ability to obtain exposure to cryptocurrency-linked investments consistent with their investment objectives is disrupted for any reason, including as a result of a lack of liquidity, volatility, or a disruption in the cryptocurrency or cryptocurrency futures market, or as a result of margin requirements, position limits, or other conditions, factors, or limitations of a particular fund, the fund may not be able to achieve its investment objective and may experience significant losses.

How to buy the BTFX ETF?

Valkyrie ETFs are available through various channels including the below. Reach out to your Financial Advisor for more information.

Charles Schwab

E-Trade

Fidelity

Interactive Brokers

Pershing

Robinhood

Vanguard

*Neither Valkyrie Funds nor BTFX, The 2x Valkyrie Bitcoin and Ether Strategy ETF are affiliated with these financial services firms. Their listing should not be viewed as a recommendation or endorsement.

ALPS Distributors Inc is not affiliated with any of the companies listed above.