CoinShares Files for BTC VIX ETFs: Betting on Bitcoin's Mood Swings

Crypto asset manager CoinShares has quietly slid a proposal into the SEC's overflowing inbox, aiming to birth three Bitcoin volatility ETFs using the existing Valkyrie ETF Trust II shell. This trio – featuring a straightforward volatility tracker, a turbocharged leveraged version, and a bearish inverse fund – would pioneer tracking the CME CF Bitcoin Volatility Index (BVX), a real-time, 30-day forward-looking gauge of Bitcoin's impending tantrums.

The BVX, cooked up by CF Benchmarks Ltd., was chilling at a level of 52 as of this writing, having inched up a mere 0.3 % since the afternoon. Since you can't exactly buy a number on a screen, these funds will get their exposure the old-fashioned way: by hoarding BVX-linked derivatives like futures, swaps, and other financial arcana that essentially bet on the index's next move. The flagship, plain-vanilla ETF is slated to list on Nasdaq with the fittingly tense ticker CBIX.

The leveraged ETF is for degens who think regular volatility is for cowards, offering amplified exposure for those who truly believe the rollercoaster hasn't peaked yet. Its inverse sibling, meanwhile, is a play for the serene, letting traders profit when Bitcoin finally takes its meds and chills out—a direct bet against crypto's fear gauge.

This strategic filing is a direct result of CoinShares' acquisition of Valkyrie Funds LLC back in March 2024, a deal that handed the Jersey-based firm the keys to Valkyrie's ETF kingdom, including the spot Bitcoin ETF known as BRRR. Instead of navigating the regulatory swamp from scratch, CoinShares is doing the smart thing and moving into the pre-built, SEC-inspected condo that is Valkyrie ETF Trust II, saving on legal headaches and time.

The SEC's 75-day review clock started ticking on March 23, meaning this volatile threesome could theoretically hit the market by early June, provided the regulators don't decide to play dead. Notably absent from the filing is any mention of management fees, because why talk about the cost of the ride when you're still building the coaster?

In essence, CoinShares is placing a calculated wager that the market's deeply neurotic relationship with Bitcoin's price action is ripe for a sleek, exchange-traded therapy session.