Crypto Asset Manager Valkyrie has signed up to the U.S. Securities and Exchange Commission to trade an exchange traded fund (ETF) involving bitcoin mining companies on the Nasdaq stock market.
Posted by the Securities and Exchange Commission (SEC), Valkyrie said on Wednesday that the Bitcoin Miners ETF will not invest directly in Bitcoin (BTC), but that at least 80% of its net worth will provide access to cryptocurrencies through securities. companies. which “derives at least 50% of the revenue or profit” from mining by BTC or from supplying hardware or software related to mining. The statement added that Valkyrie will invest up to 20% of the ETF’s net assets in companies that have “a significant share of net assets” in bitcoin.
Valkyrie launched the Bitcoin Strategy ETF in October 2021, which offered indirect exposure to BTC through cash-backed futures contracts after the SEC approved a similar ETF from ProShares. At the time of going to press, the fund’s shares are trading on Nasdaq at $ 14.93, down more than 40% since opening on October 22.
In 2021, the Securities and Exchange Commission (SEC) approved for the first time investment instruments related to BTC derivatives, but did not give the green light to any fund traded on a US spot exchange. Like the Valkyrie Bitcoin Miners ETF, a digital asset mining ETF proposed in December 2021 by the asset management company VanEck, which plans to invest 80% of its total assets in cryptocurrencies, the regulator has until February 14 to decide whether to shall finance or expand the concept.
Related: Why now? It took the SEC eight years to license the Bitcoin ETF in the United States.
While several crypto-ETFs are still being explored in the US, Canadian regulators have approved direct crypto-ETFs from Fidelity, Purpose Investments and the Evolve Fund Group. At a hearing in the House Committee in December, former chief currency inspector Brian Brooks said the United States was “without a doubt” behind other countries when it came to approving crypto-ETFs.