Valkyrie’s Bitcoin Strategy ETF made its Nasdaq debut on October 22, 2021, becoming the second Bitcoin futures-based exchange-traded fund to trade in the United States — and investors wasted no time piling in. The fund, trading under the ticker BTF, saw $10 million change hands in just the first five minutes of trading, signaling robust demand even after ProShares’ BITO had already claimed the first-mover advantage three days earlier.
TL;DR
- Valkyrie Bitcoin Strategy ETF (BTF) launched on Nasdaq at an opening price of $25.37
- The fund traded $10 million in its first five minutes, with NLS volume topping 1 million shares by early afternoon
- BTF launched three days after ProShares’ BITO, which saw near $1 billion in first-day volume
- Bitcoin prices pulled back roughly 2.4% to around $60,700 on the day of BTF’s debut
- ProShares’ BITO was already approaching CME limits on the number of futures contracts it could hold
From BTFD to BTF: A Strategic Rebrand
In the days leading up to the launch, Valkyrie had made headlines of its own by changing the fund’s proposed ticker from BTFD — a nod to the popular crypto trading mantra “buy the f***ing dip” — to the more conservative BTF. The original ticker had been celebrated by crypto enthusiasts on social media, but the company ultimately opted for a more professional identity as it sought to attract institutional investors. The Nasdaq listing at $25.37 placed the fund within reach of mainstream retail investors looking for Bitcoin exposure through traditional brokerage accounts.
Steven McClurg, chief investment officer at Valkyrie, was candid about the competitive dynamics. “If you’re number one, you’re always going to get the most amount of flows, and you will have probably solidified your place as the top ETF, so we were really fighting to be number one,” he said in an interview on launch day. Despite missing the top spot, the $10 million in five-minute volume demonstrated that investor appetite for Bitcoin ETFs extended well beyond a single product.
BITO’s Record-Setting Shadow
BTF’s debut was inevitably measured against ProShares’ Bitcoin Strategy ETF (BITO), which had launched on Tuesday, October 19, to extraordinary fanfare. BITO’s approximately $1 billion in first-day trading volume made it the second-highest ETF debut in history. By Friday, BITO was already on track to breach a limit on the number of CME Bitcoin futures contracts it was permitted to hold, according to data compiled by Bloomberg — a remarkable constraint for a product that had existed for only three trading days.
The rapid approach to position limits raised questions about the scalability of futures-based Bitcoin ETFs and whether the structure could adequately meet investor demand. With Bitcoin’s price having recently touched an all-time high near $67,000 before pulling back, the appetite for regulated crypto investment vehicles was clearly outpacing the infrastructure designed to support them.
Market Reaction: Bitcoin Pulls Back
Rather than rallying on the second ETF launch, Bitcoin prices declined for a second consecutive day. The world’s largest cryptocurrency fell approximately 2.4% to around $60,700, according to Kraken’s daily market report. Ethereum also retreated about 2.1% to trade near $3,970. Total spot trading volume across major exchanges reached $1.51 billion on October 22, above the 30-day average of $1.26 billion, while futures notional hit $485 million.
The pullback appeared to reflect a classic “sell the news” dynamic, with traders taking profits after Bitcoin’s historic run to $67,000 earlier in the week. However, the altcoin market told a different story: Solana (SOL) gained 2.7% to reach $196, Polkadot (DOT) added 1.5% to $43.47, and Cardano (ADA) ticked up 0.7% to $2.15. The divergence suggested that while Bitcoin was consolidating, capital was rotating into alternative protocols with smart contract capabilities.
The ETF Race Continues
With two Bitcoin futures ETFs now trading, the race for additional crypto investment products was accelerating. Multiple firms had filed applications for spot Bitcoin ETFs — which would hold actual Bitcoin rather than futures contracts — but the SEC had yet to approve any such product. VanEck, Galaxy Digital, and others were waiting in the wings with their own applications, betting that regulatory comfort with futures-based products would eventually extend to spot funds.
For everyday investors, the arrival of competing Bitcoin ETFs meant more choices and potentially lower fees as issuers vied for market share. Valkyrie’s BTF might have been second to market, but its strong opening-day performance proved that the Bitcoin ETF space was large enough for multiple players — and that the institutionalization of crypto was entering a new, competitive phase.
Why This Matters
The launch of Valkyrie’s BTF confirmed that the Bitcoin ETF market wasn’t a one-product story. Multiple viable investment vehicles were now available on traditional stock exchanges, giving millions of investors access to Bitcoin price exposure through their existing brokerage accounts. The fact that BITO was already approaching CME futures limits just three days in highlighted just how massive the demand truly was — and foreshadowed the eventual need for spot Bitcoin ETFs that could scale without derivatives constraints. This week in October 2021 was the moment crypto ETFs became a permanent feature of Wall Street.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Past performance is not indicative of future results. Always do your own research before making investment decisions.
the BTFD to BTF rebrand is the most on-brand wall street thing ever. crypto literally handed them a meme and compliance said no
$10M in five minutes for the number two ETF. Imagine what a spot product would have done back then.
btc pulled back 2.4% to $60,700 on launch day. ETF hype literally sold the news every single time
McClurg admitting they were fighting for number one while BITO was already approaching CME contract limits. there was no race, it was already over