Bitcoin ETF News: Will Traders Get Their Fingers Burnt With Valkyrie’s New Leveraged Fund?
3 min readIn a notable move to expand investment vehicles in the crypto space, Valkyrie Funds recently unveiled a Bitcoin ETF with 2x leverage. The “Valkyrie Bitcoin Futures Leveraged Strategy ETF” aims to provide daily investment results equal to twice (2x) the S&P CME Bitcoin Futures Index Excess Return for a single day, before fees and expenses. This innovative product allows investors to benefit more from BTC price movements. Other groups of investors who are more willing to take risks will also potentially be attracted by the new product.
Valkyrie’s Leveraged ETF: How does the derivatives-based new BTC Coin ETF work?
At the same time, technical analyzes of Ethereum compared to BTC show an interesting picture. According to well-known analyst @scottmelker, Ethereum (ETH) is at a crucial resistance point on the weekly chart. The Relative Strength Index (RSI) has already seen a breakout and retest, which could indicate a strong move ahead.
This analysis suggests that despite its recent lag in ETH’s price relative to the sharp jumps in other cryptocurrencies, a breakout could soon occur. Ethereum could attract particular interest from traders in the coming days, particularly as an alternative investment option to Bitcoin.
Valkyrie is launching a 2x Bitcoin Futures ETF today $BTFX which will compete with $BITX which has $350m already. That said, there's like 15 leveraged spot btc ETFs in registration, one or two of which will prob take off and make it tougher for the futures ones pic.twitter.com/wIoMXatS4F
— Eric Balchunas (@EricBalchunas) February 22, 2024
The introduction of the leveraged Bitcoin ETF by Valkyrie Funds as well as the promising technical prospects for Ethereum show once again that even after the acceptance of the first physical ETFs, providers still see further potential in the crypto space for products and investors.
Meanwhile, the entire cryptocurrency community is of course constantly looking at the key technical indicators for BTC in order to receive appropriate indications of the general market direction. A tweet from Satoshi Flipper suggests that even a small upward move in BTC that pushes the price above $52,000 could boost confidence among market participants. According to his assumption, there could be a significant rally in the altcoin sector as the market progresses.
Bitcoin: Critical Support and the Potential for Altcoin Rallies
Similarly, well-known chart analyst Ali highlights the importance of the $51,500 level as a key support zone for Bitcoin. As long as BTC holds this threshold, there is a substantial chance that we could see an upside move towards $57,000, according to ALi. This statement is supported by the UTXO Realized Price Distribution (URPD) graphic shared by Ali, which shows a concentrated accumulation of BTC around the mentioned price points and also visually illustrates his statement.
$51,500 has now become one of the most important support zones for #Bitcoin. As long as $BTC continues to hold above it, there is a good chance it will advance toward $57,000. pic.twitter.com/Ke3T3qi8gb
— Ali (@ali_charts) February 22, 2024
Interpretation of the UTXO Realized Price Distribution: This is how the BTC price could develop now
The UTXO Realized Price Distribution provides information about the prices at which the currently held Bitcoins were last moved. Ali’s chart clearly shows that there is a significant accumulation of Bitcoin around the $51,500 mark. The highest peaks in the distribution of BTC within the chart indicate price areas where most BTC were recently traded. This gives you important insights into potential resistance or support levels for BTC for the further Bitcoin price forecast.
