Valkyrie applies for ETF that will be linked to BTC mining companies on NASDAQ and will invest 80% of the net assets in securities of companies that derive about 50% of their revenue or profits from mining so let’s read more in today’s latest BTC news.
Crypto asset manager Valkyrie applies for ETF with the US SEC to trade them with exposure to BTC mining companies on the Nasdaq stock market. In the SEC filing, Valkyrie said that it’s BTC miners ETF will not invest in bitcoin but about 80% of the net assets would offer exposure to the crypto assets via the securities of companies that derive 50% of their revenue or profits from BTC mining or that provide hardware or software related to mining. The filing added that Valkyrie will invest up to 20% of the ETF’s net assets in companies that hold huge chunks of their net assets in BTC.
Valkyrie launched a BTC strategy ETF in 2021 which offered indirect exposure to BTC with cash-settled futures contracts following the SEC approval for a similar ETF from ProShares. At the time of publication, the shares of the fund traded on NASDAQ for $14.93 after having dropped more than 40% since opening in October. In 2021, the SEC approved investment vehicles connected to BTC derivatives for the first time but it hasn’t given the green light to any BTC spot exchange-traded fund in the US. The Valkyrie BTC miners ETF is similar to the Digital Asset Mining ETF proposed by VanEck back in 2021 which aimed to invest 80% of the total assets in securities from mining companies to reach a decision on the fund or to extend the deadline.
While most crypto ETF applications are under consideration in the US, Canadian regulators approved ETFs with more exposure to crypto from Fidelity, Evolve Fund Group, and Purpose Investmetns. In the House of Representative committee hearing, former Acting Comptroller of the Currency Brian Brooks said the US was behind other countries in approving these exchange-traded funds.
As recently reported, The SEC rejected an application for a spot market Bitcoin ETF from First Trust Advisors and SkyBridge. First Advisors and SkyBridge Capital’s application was filed in May 2021 and the two investment firms teamed up to try and get the ETF approved by the regulator. However, the SEC said the ETFs didn’t meet the requirement that the rules of national securities exchange are designed to prevent fraudulent and manipulative acts and practices and to also protect the investors and the public interest.
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