Valkyrie’s latest ETF offering is exposed to Bitcoin

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Crypto asset manager Valkyrie has launched an exchange traded fund with exposure to Bitcoin on the Nasdaq stock market.

In a filing on Wednesday with the SEC, Valkyrie said its Balance Sheet Opportunities ETF would not invest directly in Bitcoin (BTC), but that 80% of its net assets would provide exposure to the crypto asset through the bias of securities of US companies with BTC on their balance sheets. These companies can include custodians, crypto exchanges, and traders.

The record specifies that the Valkyrie 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 investment vehicles pooled in the United States that hold BTC. At the time of publication, the fund’s shares under the symbol VBB are trading at $ 24.48, having fallen more than 1.5% since its launch on Wednesday.

Presentation of the Valkyrie Balance Sheet Opportunities ETF (Nasdaq: VBB). Launch today on @Nasdaq. Organic disclosures. pic.twitter.com/YgiyQcDPPW

– Valkyrie (@ValkyrieFunds) December 15, 2021

Valkyrie’s latest ETF deposit follows the company’s launch of a Bitcoin strategy ETF in October, which offered indirect exposure to BTC with cash-settled futures contracts. The fund’s shares are currently trading on the Nasdaq for $ 18.70, having fallen about 27% since it opened on October 22.

Although the SEC has given the green light to investment vehicles related to Bitcoin derivatives, including one from Valkyrie and another from ProShares, the regulator has yet to approve an application to allow direct investment in crypto. Several crypto ETF applications are still under consideration in the United States, while its northern neighbor, Canada, has approved Fidelity’s BTC ETFs.

Related: SEC Denies WisdomTree’s Request for Bitcoin Spot ETF

According to data from Cointelegraph Markets Pro, the price of Bitcoin topped $ 49,000 today, but has fallen more than 30% since reaching a record price of $ 69,000 on November 9. At the time of publication, the BTC price is $ 47,736.

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