Valkyrie, a crypto asset manager, has applied to the United States Securities and Exchange Commission for permission to trade an exchange-traded funds (ETF) that includes exposure to Bitcoin mining companies on the Nasdaq Stock Market.
Valkyrie stated Wednesday in a SEC filing that its Bitcoin Miners ETF would not directly invest in Bitcoin (BTC), but that at least 80% its net assets would provide exposure to the crypto asset through securities of companies that derive at least 50% of their revenues or profits from BTC mining, or provide hardware or software related. According to the filing, Valkyrie will invest up 20% of its net assets in companies that hold “a significant amount of their net assets in Bitcoin.”
Valkyrie launched the Bitcoin Strategy ETF in Oct 2021. This ETF offered indirect exposure to BTC and cash-settled futures contract after ProShares was approved by the SEC. The Nasdaq listed the shares of the fund at $14.93 at the time of publication. This is after the fund’s fall of more than 40% since its opening Oct. 22.
The SEC approved 2021 investment vehicles that were linked to BTC derivatives, but it has not given permission to any Bitcoin spot-exchange-traded fund in the United States. The Valkyrie Bitcoin Miners ETF is similar to the Digital Asset Mining ETF that VanEck proposed in December 2021. It plans to invest 80% in securities from crypto-mining firms. The regulatory body has until February 14th to make a decision or extend the deadline.
Related: Why now? It took the SEC eight years to approve a Bitcoin ETF in America
Although many applications for crypto ETFs are still being considered in the United States and Canada, Canadian regulators have approved ETFs that directly expose to crypto from Fidelity Purpose Investments, Fidelity and Evolve Fund Group. In December, Brian Brooks, the former Acting Comptroller of Currency, stated that the United States was not as advanced in appraising crypto ETFs than other countries.
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