Valkyrie Applies to List Bitcoin Miners ETF on Nasdaq
The Valkyrie Bitcoin Miners ETF will invest at least 80% of its net assets in firms that derive at least 50% of their profit from bitcoin mining. Read the full article by Jamie Crawly “Neither this post nor any other on cryptofal.com should be taken as financial advice. It is not.”
One of the big factors that sent Bitcoin and Ethereum into all-time highs at the end of last year was of course El Salvador making BTC legal tender and the approvals of the first BTC ETFs being approved. The news sparked even more interest from traditional market buyers as they were able to get their hands on some crypto without having to make new accounts with exchanges they are unfamiliar with. However, this was a big moment for crypto the ETF itself only tracks the futures contract of the token so the price fluctuations would be less volatile.
The SEC has been reluctant to approve a BTC spot ETF and has rejected many applications so far. This has not stopped companies from coming up with ways to incorporate crypto-based ETFs. Today digital asset manager, Valkyrie, submitted an application to the SEC for their ETF idea that would be made up of publicly traded companies that are in the BTC mining business. Valkyrie was also the third company to be approved for a futures-based bitcoin ETF.
The filing stated that the “Valkyrie Bitcoin Miners ETF” will be investing 80% of its net assets into companies who get 50% of their profits from BTC mining. Valkyrie will be incorporating both US and non-US companies. The fund will also be charging a 0.75% management fee. The VanEck in December has also sent their application in for a similar ETF product but the SEC usually takes some time before they actually make their decisions.
It will be a long time before the SEC approves a spot ETF since they believe that it is in the best interest of investors not to approve such a volatile asset as it currently stands. For a younger more risk-on-generation direct exposure to the currency itself is the way to go. For the older generations who are comfortable with the brokers that they have been with for years, it is indirect exposure they are looking for until they feel confident that they can trust these crypto exchanges with their money.