At the end of January, the Texas-based company Valkyrie Digital Assets filed a registration for the “Valkyrie Bitcoin Trust” with the US Securities and Exchange Commission. This month, the cryptocurrency investment manager announced that it had filed with the SEC a prospectus for an ETF based on companies that own the leading crypto asset, Bitcoin.
The Valkyrie Innovative Balance Sheet ETF
Bitcoin (BTC) appreciated significantly in value in 2021. Two months ago, Valkyrie Digital Assets joined the rest of the companies to launch a US-based Bitcoin ETF. The battle to get a Bitcoin ETF approved in the US has been real, but the recent approval of three Canadian ETFs gives people hope. According to a recently released registration statement from Valkyrie Digital Assets, the company is now planning to launch another ETF based on companies that hold Bitcoin (BTC) in their treasuries.
The ETF is similar to the prospectus filed with the SEC by financial institution JP Morgan Chase, which is also a basket of companies exposed to Bitcoin (BTC). However, Valkyrie’s registration filing for the ETF does not list any companies to be listed. If approved, the fund will be referred to as the “Valkyrie Innovative Balance Sheet ETF”.
“The Fund is an actively managed exchange traded fund that invests primarily in securities of operating companies with innovative balance sheets that the Fund’s investment advisor, KKM Financial LLC (the“ Adviser ”), considers as operating companies to invest directly or indirectly in Bitcoin transactions conduct or otherwise invest in Bitcoin or be active in the Bitcoin ecosystem, ”according to the Valkyrie ETF.
According to Valkyrie, the company could also be involved in “Bitcoin trading platforms, bitcoin miners, bitcoin custodians, digital wallet providers, companies that facilitate payments with bitcoin, and companies that companies operating in the bitcoin ecosystem, other technologies, devices or offer services ”, invest.
Companies like Microstrategy that have Bitcoin (BTC) on their balance sheets could also be considered. The Valkyrie prospectus adds:
The fund may invest in companies that invest in direct holdings of Bitcoin or that balance part of their assets. The fund can invest in companies of any market capitalization. As of the date of this prospectus, the Fund expects to invest a significant portion (ie greater than 25%) of its assets in securities of companies in the information technology sector.
Crypto ETFs are in demand in the US despite regulatory uncertainty
The “Valkyrie Innovative Balance Sheet ETF” comes at a time when Bitcoin (BTC) hit another all-time price (ATH) of USD 61,782 per share on March 13th. In addition, 42 companies currently hold BTC in government bonds that capture around USD 82 billion in value. Of course, like most SEC prospectus filings, the Valkyrie registry mentions the risk associated with exposure to Bitcoin and blockchain.
“The technology that supports the Bitcoin ecosystem is new. The risks associated with owning Bitcoin or operating in the Bitcoin ecosystem may therefore not be fully understood until the ecosystem has matured, ”according to Valkyrie’s SEC filing.
What do you think of Valkyrie’s recent ETF filing, which invests in companies exposed to Bitcoin? Let us know what you think on this matter in the comments section below.
Tags in this story
Balance Sheet, Bitcoin, Bitcoin (BTC), BTC, Corporate Bitcoin, ETF, Exchange Traded Fund, Finance, SEC Filing, SEC Prospectus, Treasuries, Valkyrie, Valkyrie Digital Assets
Photo credit: Shutterstock, Pixabay, Wiki Commons
Disclaimer of liability: This article is for informational purposes only. It is not a direct offer or an invitation to submit an offer to buy or sell, or a recommendation or approval of products, services or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author are directly or indirectly responsible for any damage or loss caused or allegedly caused by or in connection with the use or reliance on any content, goods or services mentioned in this article.
