Valkyrie’s latest ETF offering has exposure to Bitcoin

Dec 17, 2021

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Crypto asset supervisor Valkyrie has launched an exchange-traded fund with publicity to Bitcoin on the Nasdaq Inventory Market.

In a Wednesday SEC submitting, Valkyrie mentioned its Steadiness Sheet Alternatives ETF won’t make investments straight in Bitcoin (BTC) however 80% of its web belongings would supply publicity to the crypto asset by way of securities of U.S. firms with BTC on their steadiness sheets. These firms might embrace custodians, crypto exchanges, and merchants.

The submitting specifies that Valkyrie’s ETF might make investments as much as 10% of its web belongings in securities of Bitcoin mining companies, in addition to as much as 5% within the securities of pooled funding autos within the U.S. that maintain BTC. On the time of publication, shares of the fund beneath the ticker VBB are buying and selling for $24.48, having fallen greater than 1.5% since launching on Wednesday.

Valkyrie’s newest ETF submitting follows the agency launching a Bitcoin Technique ETF in October which supplied oblique publicity to BTC with cash-settled futures contracts. Shares of the fund are presently buying and selling on the Nasdaq for $18.70, having fallen roughly 27% since opening on Oct. 22.

Although the SEC has given the greenlight to funding autos linked to Bitcoin derivatives, together with one from Valkyrie and one other from ProShares, the regulatory physique has but to approve an utility permitting direct investments in crypto. A number of crypto ETF functions are nonetheless into consideration in america, whereas its neighbor to the north — Canada — has authorised BTC ETFs from Constancy.

Associated: SEC rejects WisdomTree’s utility for spot Bitcoin ETF

In keeping with information from Cointelegraph Markets Professional, the worth of Bitcoin rose above $49,000 at present however has fallen greater than 30% since reaching an all-time excessive worth of $69,000 on Nov. 9. On the time of publication, the BTC worth is $47,736.