Valkyrie Applied With the SEC to Launch a Bitcoin Miners ETF

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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.

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