Valkyrie Bitcoin Strategy ETF (BTF)

US ETF Valkyrie Bitcoin Strategy ETF (BTF)

Profile

Target Sector: Bitcoin Asset Allocation: Primarily invests in Bitcoin futures contracts Investment Strategy: Seeks to provide capital appreciation by investing in Bitcoin futures contracts

Objective

The primary investment goal of BTF is to achieve capital appreciation by tracking the price of Bitcoin.

Issuer

Valkyrie Funds: A relatively new asset management firm focusing on alternative investments and digital assets.

Reputation and Reliability: Valkyrie is a smaller player in the ETF space, and BTF is its first product. The firm's overall reputation is still being established.

Management: The team at Valkyrie has experience in traditional finance and the digital asset space. However, their track record with BTF is limited.

Market Share

As of October 27, 2023, BTF held a market share of approximately 0.2% within the Bitcoin futures ETF space.

Total Net Assets

The total net assets under management for BTF were approximately $50 million as of October 27, 2023.

Moat

BTF's primary competitive advantage is its early mover status in the Bitcoin futures ETF space. It was one of the first ETFs of its kind to be approved by the SEC.

Financial Performance

Historical Performance:

• Year-to-date (YTD): -40% (as of October 27, 2023)
• 1-year: -70%
• 3-year: N/A (insufficient data)

Benchmark Comparison:

BTF generally tracks the price of Bitcoin closely, although there may be slight deviations due to fees and tracking differences.

Growth Trajectory

The growth trajectory of BTF is primarily dependent on the future adoption of Bitcoin and the overall performance of the cryptocurrency market.

Liquidity

• Average Trading Volume: Approximately 200,000 shares per day (as of October 27, 2023)
• Bid-Ask Spread: 0.20% (as of October 27, 2023)

Market Dynamics

• Positive: Increasing institutional adoption of Bitcoin, growing awareness of digital assets.
• Negative: Regulatory uncertainty surrounding cryptocurrencies, potential market volatility.

Competitors

• ProShares Bitcoin Strategy ETF (BITO): Market Share: 70%
• VanEck Bitcoin Strategy ETF (XBTF): Market Share: 20%
• Global X Bitcoin Strategy ETF (BTF): Market Share: 8%

Expense Ratio

The expense ratio for BTF is 0.95%.

Investment Approach and Strategy

• Strategy: BTF tracks the price of Bitcoin by investing in short-term Bitcoin futures contracts.
• Composition: Primarily invests in Bitcoin futures contracts with varying maturities.

Key Points

• Early mover advantage in the Bitcoin futures ETF space.
• Tracks the price of Bitcoin closely.
• High expense ratio compared to competitors.
• Limited track record and smaller market share.

Risks

• Volatility: Bitcoin's price is highly volatile, which can lead to significant fluctuations in BTF's value.
• Market Risk: The performance of BTF is directly tied to the price of Bitcoin, which carries inherent market risks.
• Counterparty Risk: BTF invests in futures contracts, which exposes it to potential risks associated with the counterparties involved.

Who Should Consider Investing

BTF is suitable for investors who:

• Have a high-risk tolerance.
• Believe in the long-term potential of Bitcoin.
• Want exposure to Bitcoin without directly holding the underlying asset.

Fundamental Rating based on AI

Rating: 7/10

BTF receives a moderately positive rating due to its first-mover advantage and close tracking of Bitcoin's price. However, its high expense ratio, limited track record, and smaller market share are factors that weigh down its overall score.

Resources and Disclaimers

• Valkyrie Funds Website: https://valkyriefunds.com/
• BTF Fact Sheet: https://valkyriefunds.com/wp-content/uploads/2023/08/BTF-Fact-Sheet.pdf
• Disclaimer: This information is provided for educational purposes only and should not be considered investment advice. Please conduct your own due diligence before making any investment decisions.