Valkyrie, a crypto asset management firm, is setting up a new exchange-traded fund (ETF) on the Nasdaq this week. Valkyrie’s new ‘Bitcoin Mining ETF,’ an investment vehicle that will give exposure to firm stocks “deriving at least 50% of their revenue or profits” from Bitcoin or crypto mining, or hardware and software connected to crypto mining, will be listed on the stock exchange.
The SEC’s cautious attitude to allowing such ETFs has hindered the launch of spot Bitcoin and crypto ETFs in the United States. The SEC, however, has recently warmed up to the idea of futures ETFs, beginning with the ProShares ETF and VanEck Bitcoin ETF. Last October was a watershed moment for public markets and cryptocurrency, with Valkyrie joining the ranks of ProShares, Invesco, and a slew of other investment institutions looking for crypto-focused ETFs.
WGMI (a tribute to the famous crypto slogan “we’re going to make it”), Valkyrie’s latest ETF, will begin trading at the Nasdaq’s opening bell tomorrow, Tuesday, February 8th.
Valkyrie has determined that 80 percent of the ETF’s portfolio holdings would be securities of companies that derive the majority of their revenue or profit from crypto mining, or from crypto mining-related hardware and/or software.
The remaining 20% of the ETF’s net assets will go to companies who have “a significant share of their net assets” in Bitcoin and other cryptocurrencies. The ETF’s cost ratio will be 0.75 percent.
It’s a wrap for this story.
