In 2021, exchange-traded funds (ETFs) have been a huge part of the crypto story. Bitcoin and the larger crypto industry began to rally after the first Bitcoin ETF from Proshares was launched on October 20.
Three days later, Valkyrie Bitcoin Strategy ETF would launch, and Bitcoin would rally to its all-time high of $68.7k. Less than two months after its first ETF was approved, Valkyrie has launched a second Bitcoin ETF.
The Valkyrie Balance Sheet Opportunities Bitcoin ETF
On Wednesday, December 15, Valkyrie announced the launch of a second Bitcoin ETF, the Valkyrie Balance Sheet opportunities ETF (VBB).
The ETF will expose investors to publicly traded companies that directly or indirectly invest in, transact in or hold Bitcoin. MicroStrategy, Block (formerly Square), Tesla, Coinbase, and PayPal are among the most popular firms in this category.
Valkyrie’s second Bitcoin ETF product will give investors indirect exposure to Bitcoin. As part of the filing, the fund may invest up to 10% of its net assets in Bitcoin mining firms’ securities and up to 5% in pooled investment vehicles in the U.S. that hold BTC.
Valkyrie Funds co-founder Steven McClurg, explained that the fund will limit its exposure to mining companies. McClurg explained that the move will help mitigate the risk of firms dealing directly in the bitcoin ecosystem.
At the time of this writing, VBB shares were changing hands at $24.47, having fallen more than 1.5% since launching on December 15.
On The Flipside
While there are several ETFs in the market, regulators have rejected filings for spot ETFs that will give investors direct exposure to BitcoinWhy You Should Care?
Investors have considered the increasing number of ETFs a step in the right direction. Hoping that an ETF with direct Bitcoin exposure will be greenlighted soon.
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