Valkyrie Files For ‘Innovative Balance Sheet ETF’

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Valkyrie Bitcoin ETF

Valkyrie Files For ‘Innovative Balance Sheet ETF’

Valkyrie Digital Assets has submitted a filing for a new exchange-traded fund (ETF) that intends to invest in companies hodling Bitcoin on their balance sheets.

The Texas-based company submitted the proposal for the Valkyrie Innovative Balance Sheet ETF with the Securities and Exchange Commission (SEC) yesterday and plans to issue its shares on NYSE Arca.

The new Bitcoin ETF proposal comes just days after news broke of investment bank JPMorgan’s structured note offering that will give its clients exposure to Bitcoin through a basket of ‘Bitcoin stocks’.

Valkyrie Bitcoin trust

Valkyrie ETF Will Invest In ‘Bitcoin Stocks’

According to the filing, the fund will invest primarily in Bitcoin-related US stocks, and up to 15% of its net assets in convertible notes and preferred securities holding with what it terms ‘innovative balance sheets.’

The filing states that Valkyrie Innovative Balance Sheet ETF will invest in ‘operating companies that directly or indirectly invest in, transact in, or otherwise have exposure to bitcoin or operate in the bitcoin ecosystem.’

As well as this, the fund may invest in companies of any market cap size, and companies built around the broader Bitcoin eco-system infrastructure.

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These include, ‘bitcoin trading platforms, bitcoin miners, bitcoin custodians, digital wallet providers, companies that facilitate payments in bitcoin, and companies that provide other technology, equipment or services to companies operating in the bitcoin ecosystem.’

The fund will also pay out a dividend to any investor holding the ETF on the fund’s record date, the size of which will be weighted by the dividend paying stocks the fund holds.

It doesn’t specify which companies will make up the Innovative Balance Sheet fund, but it can be expected, MicroStrategy, Tesla, Square, and PayPal will make up the biggest portion of the portfolio.

Bitcoin miners Marathon, Riot Blockchain, and Argo Blockchain will also make up a large part of the fund if it is given the green light.

Bitcoin ETF or Bitcoin stocks ETFs will be launched in US this year 2021

Bitcoin ETFs Or Bitcoin Stocks ETFs Coming Soon

Valkyrie has launched several ETFs and ETPs in other asset classes, and the company also runs a Bitcoin trust. The Valkyrie Bitcoin Trust (BTCV) already offers investors what the firm calls ‘safe exposure’ to Bitcoin, but the company is really pushing for a Bitcoin ETF, or at least a Bitcoin-related stocks ETF.

Valkyrie has lodged several Bitcoin ETF filings with the SEC, the last of which was in January. All previous filings were turned down by former SEC chair Jay Clayton, who stood down last December.

Now with new chair Gary Gensler set to take the reins, Valkyrie’s latest Bitcoin ETF proposal might have a chance of being approved.

And with Canada already leading the way with 3 Bitcoin ETFs, we should expect a Bitcoin ETF, and more this year.

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