BTF invests in front month bitcoin and ether futures contracts through a Cayman Islands subsidiary, maintaining an equal weight for both at each monthly rebalance. The fund does not directly invest in bitcoin or ether. The total notional value of the futures aims to be 100% of the funds net assets. The fund trades contracts exclusively on the CME, their value derived from the CME CF Bitcoin and Ether Reference Rates. BTF invests its remaining assets in collateral investments, aiming to provide liquidity and cover the margin requirements of the funds futures portfolio. If the fund reaches position limits set by the derivatives exchange, it could opt for futures contracts with extended terms or increase collateral investments. On Oct. 3, 2023, the fund changed its name from Valkyrie Bitcoin Strategy ETF to Valkyrie Bitcoin and Ether Strategy ETF, reflecting an added exposure to ether futures. Effective Oct. 31, 2024, due to an acquisition, BTF incorporated CoinShares in its name.
