2nd Bitcoin Mutual Fund Debuts

What that means for prospects of a bitcoin ETF.

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Reviewed by: Dan Mika
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Edited by: Dan Mika

Cboe Vest launched its own Bitcoin mutual fund, a move that may provide a track record for regulators to scrutinize as they mull approval of a Bitcoin ETF.

The Cboe Vest Bitcoin Strategy Managed Volatility Fund (BTCVX) launched Monday, and tracks Bitcoin futures, with active managers moving assets between contracts and cash investments based on expected volatility.

BTCVX is the second mutual fund tracking Bitcoin in the U.S. The Bitcoin Strategy ProFund (BTCFX) was the first to market when it launched in late July.

 

FundIssuerFiling DateSEC Filing

ProShares Bitcoin Strategy ETF

ProShares Advisors

8/4/2021

Link

Invesco Bitcoin Strategy ETF

Invesco Capital Management

8/4/2021

Link

Bitcoin Strategy ETF

VanEck

8/9/2021

Link

Valkyrie Bitcoin Strategy ETF

Valkyrie Funds

8/11/2021

Link
Global X Bitcoin TrustGlobal X Digital Assets7/21/21Link
ARK 21Shares Bitcoin ETF21Shares6/28/21Link
One River Carbon Neutral Bitcoin TrustOne River Digital Asset Management5/24/2021Link
Teucrium Bitcoin Futures FundTeucrium Trading5/20/2021Link
Galaxy Bitcoin ETFGalaxy Digital Capital Management04/12/2021Link
Kryptoin Bitcoin ETF TrustKryptoin Investment Advisors04/9/2021Link
Wise Origin Bitcoin TrustFD Funds Management 03/24/2021Link
First Trust SkyBridge Bitcoin ETF TrustFirst Trust Advisors 03/19/2021Link
WisdomTree Bitcoin TrustWisdomTree Digital Commodity Services03/11/2021Link
NYDIG Bitcoin ETFNYDIG Asset Management02/16/2021Link
Valkyrie Bitcoin FundValkyrie Digital Assets 01/22/2021Link
VanEck Bitcoin TrustVanEck Digital Assets12/30/2020Link

 

Precursor To A Bitcoin ETF?

As of Monday, issuers have filed with the U.S. Securities and Exchange Commission to launch no fewer than 16 ETFs tracking the prime cryptocurrency. Those requests have been held up by questions as to whether investors can be protected against the volatility of digital assets, which derive their value almost solely through speculation.

Bitcoin in particular has been the poster child for hypervolatile assets, climbing from about $30,000 in late January to as much as $63,000 per token in mid-April before suffering a vicious drawdown through much of May.

BTCVX and BTCFX could end up as test cases ahead of approval of the first set of Bitcoin ETFs, because they provide exposure to the currency’s future prices, which are likely to be less volatile than a physically backed fund that’s subject to the whims of spot pricing.

SEC Chairman Gary Gensler said as much earlier in the month during a speech at the Aspen Security Forum, where he said an ETF that follows the agency’s rules on mutual fund construction could provide the necessary protections for investor use.

Contact Dan Mika at [email protected], and follow him on Twitter

Dan Mika is a reporter for etf.com. He has previously covered business for the Ames Tribune and Cedar Rapids Gazette in Iowa, and BizWest Media in Fort Collins, Colorado. Dan holds a bachelor's degree in journalism from Truman State University.