Asset manager Valkyrie Investments is apparently looking to see how far it can venture with crypto products now that U.S. federal regulators started approving Bitcoin (CRYPTO: BTC) futures-backed exchange-traded funds (ETFs).
What Happened: Valkyrie filed on Tuesday with the U.S. Securities and Exchange Commission to launch a Bitcoin futures-backed ETF with 1.25x leverage, documents published by the regulator show. The firm recently saw the approval of its Valkyrie Bitcoin Strategy ETF (NASDAQ:BTF), which means that such products are now trading both on Nasdaq and the New York Stock Exchange.
The development follows recent reports suggesting that the launch of Bitcoin ETFs such as the ProShares Bitcoin Strategy ETF (NYSE:BITO) already enables new leverage and hedging opportunities for Bitcoin traders and investors alike.
More precisely, the launch of the ETF was followed by its debut on Wednesday on the NYSE American options exchanges, where options constitute advanced leverage or hedging tool.
BTC Price Action: Bitcoin is trading 1.52% lower over 24 hours at $62,523.17, according to CoinMarketCap.