Valkyrie Digital Assets, an alternative financial services firm, has just announced it has filed a Bitcoin ETF application with the US Securities and Exchange Commission (SEC).
According to the filing, the investment product offers potential investors indirect exposure to Bitcoin through cash-settled futures contracts.
These futures contracts will be purchased through a Cayman Islands-based subsidiary owned by the fund through exchanges registered with the US Commodity Futures Trading Commission.
According to the document, the fund will initially only invest in Bitcoin contracts traded on the Chicago Mercantile Exchange (CME), with the goal for the ETF to have a total notional value of its underlying futures contracts “as close to 100% of the fund’s net assets as possible.”
Notably, the company had already filed another application in April to launch a spot Bitcoin ETF under the Securities Act (1933).
However, the new application is based on the Investment Company Act of 1940 after the SEC Director Gary Gensler recently said the regulator could approve ETFs exposed to BTC futures contracts regulated under that law.