Valkyrie Applied With the SEC to Launch a Bitcoin Miners ETF

Months after having its Bitcoin futures-backed ETF launched on the US stock market, the crypto asset manager has sought approval for another exchange-traded fund. This time, though, the company wants the new product to be focused on bitcoin mining firms only.

• According to the filing to the Securities and Exchange Commission, the Valkyrie Bitcoin Miners ETF will invest at least 80% of its net assets in securities of companies that “derive at least 50% of their revenue or profits from bitcoin mining operations and/or from providing specialized chips, hardware, and software or other services to companies engaged in bitcoin mining.”
• No more than 5% can be invested in the debt instruments of BTC mining entities.
• The document highlighted that the new product will not invest in bitcoin directly or indirectly through derivatives.
• If approved, Valkyrie Funds LLC will serve as the ETF’s investment adviser, while Vident Investment Advisory will be the sub-adviser.
• The advisors could also decide to allocate up to 20% of the fund’s net assets in companies holding a “significant portion of their net assets in bitcoin on their balance sheet or derive a significant portion of their revenue or profits directly from mining, lending, transacting in bitcoin.”
• Valkyrie also said it will focus on firms using green and renewable energy for its mining activities, with 80% or more of the fund’s net assets going in such organizations.
• The crypto management firm already made history in late 2021 when its Bitcoin Strategy (futures-backed) ETF became the second such product to go live in the US.