CoinShares Files for Bitcoin Volatility ETF Suite, Targeting BTC Price Swings

Digital plus manager CoinShares has softly filed an amendment to registry 3 caller ETFs that way Bitcoin volatility.

The Valkyrie ETF Trust II filed a post-effective amendment with the SEC for the CoinShares Bitcoin Volatility ETF, CoinShares Bitcoin Volatility Leveraged ETF, and CoinShares Bitcoin Volatility Inverse ETF. The filing was archetypal flagged by Bloomberg Senior ETF Analyst Eric Balchunas on X.

"Currently we cognize of nary ETF that exists that volition supply investors, institutions, and advisors vulnerability to the volatility of Bitcoin," a idiosyncratic acquainted with the filings told Decrypt. "This suite of ETFs seeks to nett from accrued oregon decreased volatility of Bitcoin, and whitethorn enactment arsenic a strategy to negociate hazard successful the convenient ETF wrapper."

Although the ProShares Bitcoin ETF (BITO) and Volatility Shares 2x Bitcoin Strategy ETF (BITX) springiness investors vulnerability to Bitcoin's terms via futures, the CoinShares funds would beryllium the archetypal to specifically way the BVX.

The CME CF Bitcoin Volatility Index, oregon BVX, is calculated by CF Benchmarks Ltd. and published erstwhile per second. It measures implied volatility successful CME's Bitcoin options marketplace implicit a 30-day guardant window—essentially a BTC equivalent of the VIX.

At the clip of writing, the BVX was sitting astatine 52 aft having risen 0.3% since 1:30 p.m. Eastern Time.

The CoinShares Bitcoin Volatility ETF, which would commercialized nether the CBIX ticker connected the Nasdaq, seeks to connection "managed vulnerability to futures contracts connected the CME CF Bitcoin Volatility Index," according to the filing. Because the Bitcoin Volatility Index itself is non-investible, the money volition clasp BTC volatility-linked instruments instead—including volatility futures contracts, shares oregon options successful companies with akin exposure, and BTC volatility-linked swaps.

The suite besides includes a leveraged and an inverse variant. The CoinShares Bitcoin Volatility Leveraged ETF would connection amplified vulnerability to moves successful the Bitcoin Volatility Index, portion the CoinShares Bitcoin Volatility Inverse ETF would let investors to stake against volatility, and truthful nett erstwhile the BVX falls.

Ticker symbols for those 2 funds were not listed successful the filing.

CoinShares is utilizing the Valkyrie ETF Trust II shell—which already has an SEC registration number—to motorboat the funds alternatively than starting from scratch with a caller trust.

CoinShares completed its acquisition of Valkyrie Funds LLC successful March 2024, a determination that gave the Jersey-based integer plus manager a foothold successful the U.S. marketplace and sponsor rights to Valkyrie's suite of existing ETFs, including its spot Bitcoin money trading nether the BRRR ticker connected Nasdaq.

The filing appears to inactive beryllium successful its aboriginal stages and doesn't database absorption fees for immoderate of BTC volatility funds. The 75-day effectual timer started connected Monday, March 23, which means that the funds could statesman trading successful aboriginal June if there's nary pushback oregon delays from the SEC.