Bitcoin is included in Valkyrie’s latest ETF offering.
According to the report, Valkyrie’s ETF may invest as much as 10% of its net assets in securities of Bitcoin (BTC) mining companies, as well as up to 5% in securities of Bitcoin-related pooled investment vehicles in the United States.
Valkyrie, a crypto asset manager, has developed a Nasdaq Stock Market exchange-traded fund with Bitcoin (BTC) exposure.
Valkyrie stated in a Wednesday SEC filing that its Balance Sheet Opportunities ETF will not invest directly in Bitcoin (BTC), but will instead invest 80% of its net assets in securities of U.S. corporations with Bitcoin (BTC) on their balance sheets. Custodians, crypto exchanges, and traders are examples of these businesses.
According to the filing, Valkyrie’s ETF may invest up to 10% of its net assets in securities of Bitcoin mining companies, as well as up to 5% in securities of Bitcoin-related pooled investment vehicles in the United States. The fund’s shares, which trade under the ticker VBB, are currently selling for $24.48, down more than 1.5 percent since its introduction on Wednesday.
Valkyrie’s latest ETF registration comes after the company launched a Bitcoin Strategy ETF in October, which offered cash-settled futures contracts as an indirect way to invest in bitcoin. The fund’s shares are presently trading on the Nasdaq for $18.70, down nearly 27% since its first public offering on Oct. 22.
The Securities and Exchange Commission (SEC) has approved investment vehicles tied to Bitcoin derivatives, including one from Valkyrie and another from ProShares, but it has yet to accept an application permitting direct crypto investments. Several crypto ETF applications are still pending in the United States, whereas its northern neighbor, Canada, has accepted Fidelity’s BTC ETFs.
Bitcoin’s price soared above $49,000 today, according to Cointelegraph Markets Pro statistics, but has lost more than 30% since reaching an all-time high of $69,000 on Nov. 9. The BTC price is $47,736 at the time of publication.