Valkyrie plans to launch a new ETF VBB! Tracking listed companies holding Bitcoin such as Tesla

Time:2021-12-25 Source: 1118 views Trending Copy share

Valkyrie Funds, the issuer that launched the second Bitcoin futures ETF ($BTF) in the United States, issued a prospectus yesterday, stating that the company is planning to launch a new product Valkyrie Balance Sheet Opportunities ETF (code-named VBB) on Nasdaq , The fund will track U.S. listed companies holding cryptocurrency assets (such as MicroStrategy, Square, Tesla...).

Valkyrie plans to launch a new ETF! Tracking listed companies holding Bitcoin such as Tesla

Valkyrie Funds, a cryptocurrency asset management company, has recently announced a new move following the launch of its second Bitcoin futures ETF (code-named BTF) in the United States in late October. According to the company's public prospectus on the 15th, Valkyrie is planning to launch a new product Valkyrie Balance Sheet Opportunities ETF (code-named VBB) on Nasdaq.

According to documents, the fund is an actively managed trading fund that invests at least 80% of its net assets (plus borrowings for investment purposes) in the securities of American companies with innovative balance sheets, and will not be used Derivatives are directly or indirectly invested in Bitcoin. The annual management fee of the fund is: 0.75%

Valkyrie's chief investment officer, Steve Mc Clurg, said that VBB may not receive billions of dollars in inflows in the early stages of the Bitcoin futures ETF they launched earlier. But he said that the more traditional financial markets have a larger market to tap into.

"Futures mainly attract hedge funds and quantitative strategy traders. But the reality is that many financial advisors can't actually use it on their platforms, partly because of specific deficiencies in the futures market."

Selection of new ETF investment targets

According to Coindesk, the ETF's stock holding targets may choose: MicroStrategy, Square, Tesla, Mastercard, Robinhood, PayPal, Coinbase and other listed US companies in the cryptocurrency industry.

According to data from Bitcointreasuries, the company that currently holds the most bitcoin assets is still MicroStrategy. The BTC value it owns before the deadline is approximately US$5.9 billion, accounting for 97% of its company's market value; followed by Tesla and Square.

Valkyrie actively launches new products for crypto investment

After launching the Bitcoin futures ETF, Valkyrie also successively applied to the SEC for spot ETFs and futures ETFs (code-named BTFX) with 1.25 times leverage, but they were all rejected by the regulatory authorities. Chief Investment Officer Steven Mc Clurg said in an interview with foreign media "CNBC" in late October: Unfortunately, the listing of Bitcoin futures ETFs may not necessarily accelerate the approval of Bitcoin spot ETFs. And I think we will not see the listing of Bitcoin spot ETFs until at least the middle of next year.

So far, in addition to Valkyrie, more than a dozen companies have applied for ETFs that track Bitcoin spot, including: VanEck, WisdomTree, NYDIG/StoneRidge, FirstTrust/SkyBridge, Fidelity/WiseOrigin, GalaxyDigital , Ark Investment (ArkInvest) and Grayscale (Grayscale) and other well-known companies.

However, the US Securities and Exchange Commission (SEC) currently has reservations about all Bitcoin spot ETF applications because it provides direct exposure to Bitcoin; the SEC has repeatedly emphasized the risk of spot ETFs and market manipulation risks.

The currency circle previously reported that the difference between bitcoin futures and spot ETFs is that spot bitcoin ETFs are more suitable for investors who wish to invest in bitcoin itself without actually holding bitcoin on the premise of compliance. ; Bitcoin futures ETFs do not hold physical bitcoins, but use financial instruments such as bitcoin futures contracts to lay the foundation for stocks. Therefore, the stock prices of futures-backed bitcoin ETFs may have a certain degree of price deviation.

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