How to buy Valkyrie Bitcoin Strategy ETF shares

The Valkyrie Bitcoin Strategy ETF (BTF) is one of the first Bitcoin ETFs to be listed on an American stock exchange. In this guide, we explain in detail the steps you need to take to buy shares in the ETF.
By: Charlie Hancox
Charlie Hancox
Alongside his passion for trading, Charlie has represented Great Britain and won national championships as a water polo player,… read more.
Updated: Oct 26, 2021

On this page, we explain everything you need to know before you invest in Valkyrie Bitcoin Strategy. This is a form of ETF (or exchange-traded fund) that is essentially a means of gaining exposure to a specific asset; in this case, Bitcoin. Read on to find out what BTF has to offer and how to get involved.

Compare the best Bitcoin Valkyrie trading platforms

To purchase an ETF like the Valkyrie Bitcoin fund, you need to follow the same process that would take when purchasing shares in a public company. Essentially, sign up to a broker, deposit funds, and purchase the number of shares you want in BTF. Below, we have outlined some of the top platforms for doing this.

1
Min. Deposit
$50
Promotion
User Score
10
Trade/invest in stocks with just $50
Invest for dividends and get payout on stocks on Ex-Dividend day
Over 11 payment methods, including PayPal
Start Trading
Description:
eToro is a multi-asset investment platform with more than 2000 assets, including FX, stocks, ETF’s, indices and commodities. eToro users can connect with, learn from, and copy or get copied by other users. Buying stocks on eToro is free and you can invest with as little as $50.
Payment Methods
Bank Transfer, Wire Transfer
Full regulations list:
CySEC, FCA
eToro USA LLC does not offer CFDs and makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared by our partner utilizing publicly available non-entity specific information about eToro. Your capital is at risk.
2
Min. Deposit
$1
Promotion
User Score
9.3
0 Commissions and no deposit minimums
Registered with and regulated by SEC and FINRA
Loss of cash protection
Start Trading
Description:
Financial company driven by technology and offering all-in-one self-directed investment platform that provides excellent user experience.
Payment Methods
Full regulations list:

How to buy the Valkyrie Strategy ETF, a step-by-step guide

The process of investing in an ETF is quick and simple, so don’t worry, even if you’re new to investing. These are the steps to follow in order to complete your investment:

  1. Choose a broker. You will need to use an online brokerage platform. There are many different options to choose from, each with their own unique benefits and drawbacks. The comparison table above can help you select the right broker for you, and you can head to our comprehensive broker reviews if you’re still unsure.
  2. Create an account. Once you’ve selected your broker, simply go to their website and create an account. The steps required for this will vary from platform to platform, but generally you can expect to have to provide your name, email address, phone number, and some form of photo identification.
  3. Deposit funds. Log into your broker account and select the option to deposit funds. Depending on your broker you’ll have a variety of payment options available; most brokers accept bank transfers and debit card payments, but not all accept e-wallets such as PayPal. Select your preferred payment method and deposit the amount of money you wish to invest in the Bitcoin Strategy ETF.
  4. Place an order for the BTF ETF. Search for the Valkyrie Bitcoin Strategy ticker symbol (BTF) and see the current price at which the ETF is trading. If you’re happy with the price, enter the amount of shares you wish to own and place your order.
  5. Execute your order. Once you have placed your order, your broker will automatically execute it for you and your shares will be listed in your account. Congratulations, you’ve just invested in a Bitcoin ETF.

Should I invest in Valkyrie Bitcoin Strategy ETF?

If you want to speculate on the value of Bitcoin but would rather not purchase coins outright, the Valkyrie Bitcoin Strategy ETF offers an alternative. An ETF is a fund that trades on a stock exchange, just like a regular stock, and it aims to track the price of a particular asset – in this instance, Bitcoin.

The Valkyrie fund is actively managed, meaning a fund manager makes decisions on what to buy and sell within the fund. It is comprised of a ‘basket of securities,’ or more specifically, Bitcoin futures contracts. This allows the fund to gain exposure to the price performance of Bitcoin without having to own any coins outright.

The sole aim of the Valkyrie Strategy ETF is to track the price of the Chicago Mercantile Exchange (CME) Bitcoin futures. The CME is the largest bitcoin futures platform, and this popularity has increased since the launch of the first Bitcoin ETF in the US, BITO. The main advantage of an ETF over a cryptocurrency is that the level of regulatory protection is higher for investors since it is a more established financial instrument, meaning if you want to get involved in crypto for the first time, this could be the way to go.

How has the ETF performed in recent years?

The Valkyrie ETF only became available in October 2021, so it is difficult to draw significant conclusions from its price performance. However, data on the price performance of the asset it tracks – Bitcoin – is much more readily accessible. In recent years, a single Bitcoin has surged in value from a value of around $500 in 2016 to highs of over $65,000. Moreover, the world’s most popular cryptocurrency spent most of 2021 trading above $20,000, demonstrating the consistent performance that investors crave.

Valkyrie is one of the first Bitcoin ETFs to represent a new means of investment in the cryptocurrency, and it has been met with much interest. While in the first few hours of trading, the price of the ETF fell slightly, the Bitcoin price continued to surge, demonstrating the momentum and growth potential in the sector.

Part of the reason for this momentum is the fact that ETFs like Valkyrie have been approved in the first place. The fact that the securities and exchanges commission (SEC) has not prevented the ETF from being listed has legitimised Bitcoin as a genuine monetary asset, pushing it one step closer to mainstream acceptance and eventual adoption. In the backdrop, within the crypto community, the mood is bullish right now.

Is it a good time to buy the Bitcoin Strategy ETF now?

There are a variety of factors to consider before pulling the trigger. First and foremost, it is worth noting that assets tend to be more volatile when they have first been listed. An initial public offering (IPO) can generate much interest and speculation, and as a result, price performance tends to be choppy for a while until traders have moved onto a more volatile asset and long-term investors have settled into a position.

Bitcoin itself is a volatile asset, and in addition to this, you need to take into account the specific risk factors of the Valkyrie ETF. Being actively managed, you need to trust that the fund managers will make wise decisions to boost returns for investors. In addition, there are other criteria that can affect the price performance of an ETF, such as management fees, as well as the macroeconomic factors that can affect the price of Bitcoin. Essentially, there are plenty of things to pay attention to.

ETFs offer a degree of diversification that can’t be matched with individual cryptocurrencies since they contain a basket of assets rather than a single one. as a result, if one is performing poorly, other assets within the ETF may be able to pick up the slack and compensate. Before you invest in an ETF that tracks Bitcoin, it is vital that you are informed about the latest developments surrounding it. Check out any of our analyses below for more guidance.

The cryptocurrency market is advancing this Friday, Bitcoin is trading very close to $58000, and for now, everything indicates that the price could advance above this level very soon. Fundamental analysis: Institutional demand continues to grow significantly Bitcoin continues to enjoy the support of both developers and user communities while…
Bitcoin (BTC) price is up over 86% year-to-end (YTD) as investors moved to price in the higher adoption of cryptocurrencies and the underlying blockchain technology Tesla pioneering EVs, and crypto adoption as well Bitcoin and cryptocurrency are having a good one. It’s been hard to keep up with the…
Bitcoin (BTC) price is trading about 3% lower this week as it faces mild selling pressure, following a strong push higher in recent weeks.  BTC price could decline 50% in the short run, says Guggenheim CIO Bitcoin price has corrected lower in the past two weeks as industry experts…

Buying, selling and trading Valkyrie Bitcoin Strategy for beginners

What to do before buying shares

You should always take the time to research an ETF fully before investing your money, especially if you haven’t bought shares before. The more knowledge you have, the better your chances of making a wise investment. 

With that in mind, here’s a checklist to run through before you start.

  1. Research the investment. You should always examine the basics first. What is Valkyrie Bitcoin Strategy? When did the ETF first become avialable? How long has it been running? Is the Bitcoin performance picking up? Does it own any other assets besides Bitcoin? The more you know about an ETF and its background, the better positioned you’ll be to make smart investment decisions.
  2. Make sure you understand the basics of ETF investing. Before getting involved in the ETF market, make sure you have an understanding of how it works. This will ensure that you have more clearly defined goals and have thought through how you will achieve them.
  3. Decide between share dealing and CFD trading. Choose the type of investment strategy you want to pursue, and make sure you have carried out the necessary fundamental or technical analysis for share dealing and CFD trading respectively.
  4. Set the size of your budget. The golden rule of investing is never to risk more than you can afford to lose. Not every investment you make will result in a profit, so it is important to set a budget that not only allows good potential for capital growth, but also protects against overly damaging losses.
  5. Find the right broker. Individual brokers each have their own pros and cons. Some will have low fees but have a user interface you struggle to understand, whereas others may be a bit more expensive but come with a range of features that you want to take advantage of. Our reviews can help you find the right platform.
  6. Examine broader market conditions. No ETF exists in a vacuum, and it’s always important to analyse the general trends of the market as a whole before investing. If a bear market is setting in and prices are falling, it’s best to wait it out and invest your money later when the ETF is cheaper. If, however, the market is looking bullish, you’ll want to make your investment quickly to get the maximum benefit from rising prices. Follow the news to keep on top of movements in the financial markets.

What is the difference between buying, selling, and trading shares?

If you’re new to ETF investing, then it’s important to understand the basics of how to buy, sell, and trade Bitcoin Valkyrie. Here’s a quick run-through of what’s involved in each.

Buying the Valkyrie Strategy ETF

This process involves finding a broker and placing an order for the Valkyrie Bitcoin fund, as outlined in the steps further up this page. Ideally, you want to time your investment when the ETF’s price is low so that you can profit by selling the shares after they increase in value.

Selling the Valkyrie Strategy ETF

When you sell any shares you have bought, you’ll want to do so at a higher price than the one at which you bought to earn a profit. 

When you sell is up to you. You might decide to hold for a long period of time, hoping to benefit from the company growing steadily throughout. Or, if you see that the ETF is already up a lot compared to the price you bought it and you’ve noticed that the Bitcoin market is starting to fall, it might make sense to sell and take your profits to invest elsewhere. Equally, if the ETF price has fallen since you bought it and looks set to fall further, it might be a good idea to cut your losses by selling your shares.

Trading the Valkyrie Strategy ETF

Trading is the same process, it’s just done over shorter periods of time with the aim to make small profits on a regular basis. This means that you can make money faster and spend your profits in your day-to-day life – however, on the other side it means you can lose money faster as well. For inexperienced investors, we generally recommend making investments for at least 6 months to a year instead of making trades in quick succession.

You can trade Valkyrie shares through buying and selling them outright, or by trading with CFDs. These allow investors to speculate on ETF prices and trade with leverage in pursuit of bigger gains. CFDs trading is explained further in the next section, but it is worth noting that beginners should avoid trading with leverage. It comes with large risks and is best left to experienced investors.

Share dealing vs CFD trading

When it comes to investing in any ETF, the two options you have are share dealing and trading. Which one of these methods to opt for largely depends on your investment timeline, with investors thinking long term tending to go for share dealing, and those looking for short term gains pursuing a more aggressive trading strategy.

Here’s a quick summary of the two approaches, and the pros and cons of each.

Share dealing 

Share dealing refers to the practice of buying and holding shares in a particular company over the long term. When investing like this, you’re seeking to profit either from dividend payments or an increase in the ETF’s price over time.

When investing your money this way, it is important to do a thorough fundamental analysis of the company in which you are investing. You want to put your money in an ETF you believe will trend upwards over time, even if there is some market volatility along the way, rather than get distracted by shorter-term peaks and troughs.

Pros

  • Can build wealth over time to achieve financial goals
  • Don’t need to be very reactive to short-term market movements
  • Some ETFs will give you an income through regular dividend payments

Cons

  • Takes a long time to realise any profits
  • Your capital is tied up in ETFs and cannot be used for other investments

CFD Trading 

If your aim is to generate profits in the short term, then you might be better off trading shares than holding them in your portfolio. ETF trades like this are executed using CFDs (contracts for difference), which allow investors to trade against the value of an ETF without having to take ownership of it. When CFD trading, investors are looking to buy and sell ETFs fast to profit from short-term fluctuations in value.

One aspect of CFD trading that many investors find attractive is that they allow you to trade with leverage. This means you can place large trades while only putting up a fraction of the value yourself – for instance, if a platform offered leverage of 1:10, you could put £10 into BTF shares and be able to trade £100 worth. This can maximise profits if the market moves in your favour, but be careful as it can also lead to heavy losses.

When trading using CFDs, it is key to be skilled at technical analysis and reading ETF price charts. As you’re trading ETFs quickly and frequently, the fundamental strength of the company in which you’re investing isn’t as important as being able to predict how its ETF price will rise and fall minute-by-minute.

Pros

  • Can generate fast profits if you read the market right 
  • Some platforms allow you to trade with leverage
  • Prevents your capital being tied up so you can take advantage of investment opportunities

Cons

  • Trading with leverage is risky and can lead to big losses
  • Doesn’t necessarily generate growth over the long term

Consider which approach suits you best and craft an investment strategy that works for you. To learn more about taking a short term approach, have a look at our course on day trading.

How to choose a broker

With the wide variety of online brokers available these days, it can be hard to figure out which is the best service to go with. Our comparison table and in-depth reviews can help you cut through the noise, but by and large, these are the aspects you should be considering when selecting a broker:

  • Range of ETFs available. The most important thing is that you can actually use the broker to find the shares you’re looking for. Some brokers offer more ETFs than others, and many will allow you to trade other assets, such as stocks, cryptocurrency, and commodities.
  • Fees and commissions. You want to keep as large a chunk of your profits as you can, so it’s important to make sure your broker doesn’t charge high fees that can eat into your profits.
  • Regulation. You should only use regulated brokers. Unregulated brokers can be risky and offer little to no protection if the business were to fail while you had funds in your account.
  • Payment methods available. You might want to fund your trading account using a specific payment method, such as PayPal. Not all brokers accept every payment method, but using our comparisons you can search only the brokers that support the option you’re looking for.
  • Reputation. One of the strongest indicators of a broker’s reliability is the reputation it has with the customers who have used it. Brokers are online businesses, and as such many user experiences can be found online. You can check these out in addition to our reviews to make sure you choose the right platform.
  • Customer service. As you’re going to be investing your money using the platform, you want to check that the broker offers good customer service in case you have a query or something goes wrong.

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Fact-checking & references

Our editors fact-check all content to ensure compliance with our strict editorial policy. The information in this article is supported by the following reliable sources.

Risk disclaimer

Invezz is a place where people can find reliable, unbiased information about finance, trading, and investing – but we do not offer financial advice and users should always carry out their own research. The assets covered on this website, including stocks, cryptocurrencies, and commodities can be highly volatile and new investors often lose money. Success in the financial markets is not guaranteed, and users should never invest more than they can afford to lose. You should consider your own personal circumstances and take the time to explore all your options before making any investment. Read our risk disclaimer >

Charlie Hancox
Financial writer
Alongside his passion for trading, Charlie has represented Great Britain and won national championships as a water polo player, and as a budding film director, has… read more.