Valkyrie Funds LLC has received approval to trade on the NASDAQ Stock Market and the Securities and Exchange Commission has accepted the company’s application. Moreover, Valkyrie is a crypto asset management company and thus, wants to list its Exchange Traded Fund (ETF) with exposure to bitcoin mining firms.
According to the application filed with SEC, Valkyrie Bitcoin Miners ETF will be investing at least 80% of its net assets in securities of firms. Furthermore, these firms will be the ones that get 50% of their profits from Bitcoin Mining.
Additionally, the company’s spokesperson has said that the Bitcoin Miners ETF will start trading on NASDAQ from Feb 7 2022. The ticker symbol for the same will be “WGMI”.
“Desire To Gain Exposure To Bitcoin Miners From Investors”, Says Valkyrie CEO
The CEO of Valkyrie, Leah Wald, explained the company’s decision to offer a Bitcoin ETF. Investor sentiment is the main reason for this move.
The Financial Planning Association Survey reveals that more than 80% of investors ask financial advisors about cryptocurrencies. However, advisors find it difficult to accommodate this asset class in the client’s portfolio.
Wald explains the ETF results from “an increased focus and desire to gain exposure to Bitcoin miners from investors.” This is why the ETF applied to the SEC on Jan 26 2022.
Many corporations and financial institutions have started taking an interest in digital assets. Valkyrie is not the first company to offer a bitcoin futures ETF. Last October, ProShares listed its ProShares Bitcoin Strategy ETF in the New York Stock Exchange.
Bitcoin Miners ETF Is The Third Crypto Focused Asset Of Valkyrie
Valkyrie is no stranger to the cryptocurrency world. With its new Bitcoin Miners ETF, the company is launching its third crypto-focused asset. In November 2021, the company launched its Bitcoin Strategy ETF.
Similarly, in December 2021, the company launched its Balance Sheet Opportunities ETF. This fund focused on equities that invested in Bitcoin.
The new Bitcoin Miners ETF bears a stark resemblance to the ETF proposed by VanEck in December. The Digital Asset Mining ETF of VanEck planned to invest 80% of its total assets in securities of crypto mining firms. The SEC is going to decide on VanEck’s ETF by Feb 14.
The SEC has given approvals for Future Bitcoin ETFs at a faster rate. The regulatory body is yet to allow the listing of Spot Bitcoin ETFs due to its volatile nature.
During the Valkyrie Balance Sheet Opportunities ETF launch, Leah Wald said that companies with exposure to Bitcoin would generate more returns for shareholders in the coming decade.