CoinShares, a digital asset management firm, has discreetly submitted an amendment to introduce three new exchange-traded funds (ETFs) focused on tracking the volatility of Bitcoin.
The Valkyrie ETF Trust II has filed a post-effective amendment with the SEC concerning the CoinShares Bitcoin Volatility ETF, CoinShares Bitcoin Volatility Leveraged ETF, and CoinShares Bitcoin Volatility Inverse ETF. This development was initially highlighted by Eric Balchunas, a senior analyst for ETFs at Bloomberg, via X.
A source familiar with these filings informed Decrypt, “As far as we know, there is currently no existing ETF that allows investors—be they individuals or institutions—to gain exposure to Bitcoin’s volatility. This range of ETFs aims to capitalize on both rising and falling volatility in Bitcoin and could serve as a risk management strategy packaged conveniently within an ETF.”
While ProShares’ BITO and Volatility Shares’ BITX provide indirect exposure to Bitcoin’s price through futures contracts, the offerings from CoinShares would be unique in their direct focus on tracking the BVX.
The CME CF Bitcoin Volatility Index (BVX), computed by CF Benchmarks Ltd., is updated every second. It gauges implied volatility within CME’s options market for Bitcoin over a 30-day period—functioning similarly to how VIX operates for traditional markets.
At present writing, the BVX stands at 52 after experiencing a slight increase of 0.3% since 1:30 PM Eastern Time.
The proposed CoinShares Bitcoin Volatility ETF will trade under the ticker CBIX on Nasdaq and aims to provide “managed exposure to futures contracts linked to the CME CF Bitcoin Volatility Index,” according to its filing details. Since direct investment in this index isn’t possible, this fund will instead hold instruments tied to $BTC volatility—including futures contracts related to volatility itself as well as shares or options from companies that have similar exposures along with swaps linked specifically to $BTC volatility.
This suite also features leveraged and inverse variants; specifically designed for those looking for heightened sensitivity or betting against market fluctuations respectively. The leveraged variant will amplify movements associated with changes in the BTC Volatility Index while its inverse counterpart enables investors profit when BVX declines.
No ticker symbols were provided for these two additional funds within this filing document.
Rather than creating an entirely new trust from scratch, CoinShares opted for utilizing Valkyrie ETF Trust II—which already possesses SEC registration—to facilitate launching these funds efficiently.
This move follows CoinShares’ acquisition of Valkyrie Funds LLC completed in March 2024—a strategic decision allowing them entry into U.S markets alongside sponsorship rights over Valkyrie’s existing lineup of ETFs including their spot bitcoin fund trading under BRRR ticker on Nasdaq.
The current filing appears preliminary without specified management fees attached yet regarding any $BTC-related volatile funds involved herewith; however it’s worth noting that since March 23 marked commencement date beginning effective countdown period lasting up until roughly early June barring any objections/delays imposed by SEC intervention thereafter potentially impacting launch timeline ahead!