Valkyrie Applies for Bitcoin Mining-Focused ETF

The fund will invest at least 80% of its assets into firms that derive at least 50% of their revenue from Bitcoin mining.

Valkyrie Applies for Bitcoin Mining-Focused ETF
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Key Takeaways

  • Valkyrie Investments has applied for a new Bitcoin mining-focused exchange-traded fund with the SEC.
  • According to the filing, if approved, the fund would invest in domestic and foreign companies that make 50% of their revenue from Bitcoin mining or related operations.
  • Valkyrie will also consider ESG criteria in selecting stocks for the fund's portfolio and invest most of its assets in miners that rely mostly on renewable or clean energy sources.

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Crypto asset manager Valkyrie Investments has applied with the SEC to list a Bitcoin mining-focused exchange-traded fund on the Nasdaq.

Valkyrie ETF to Invest in Bitcoin Mining Stocks

Valkyrie has applied for a Bitcoin mining-focused exchange-traded fund.

According to a Wednesday filing with the SEC, Valkyrie’s proposed ETF would invest at least 80% of its net assets into stocks of companies that derive most of their revenue from Bitcoin mining-related operations, including the production of specialized mining chips, hardware, and software.

Considering the SEC’s refusal to approve applications for physical or spot Bitcoin ETFs, asset managers and investment firms have turned to products offering indirect exposure to the cryptocurrency market, including Bitcoin futures ETFs, crypto company stocks, or ETFs that invest in them.

The Valkyrie Bitcoin Miners ETF will invest neither directly nor indirectly in Bitcoin, related derivatives, investment funds, or trusts that hold the asset. Instead, if approved by the SEC, the fund will be an actively managed exchange-traded vehicle focused on purchasing stocks of Bitcoin miners or crypto-mining equipment manufacturers. The ETF will charge a 0.75% annual management fee.

According to today’s filing, Valkyrie will also consider environmental, social, and governance (ESG) criteria in selecting securities for the fund’s portfolio. Specifically, the firm plans to allocate at least 80% of the fund’s net assets to companies that use at least 50% renewable or clean energy for their mining activities. If the SEC approves the fund, Valkyrie’s new ETF will provide investors with a diversified, direct exposure to the Bitcoin mining industry.

This isn’t Valkyrie’s first crypto-related ETF. Last October, the crypto asset manager became the third firm to launch a Bitcoin futures ETF, following ProShares and VanEck. A month later, Valkyrie also launched a $100 million DeFi hedge fund, providing investors with exposure to more than 24 cryptocurrencies on more than 13 blockchains.

Disclosure: At the time of writing, the author of this piece owned ETH and several other cryptocurrencies.

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