Crypto asset management firm Valkyrie will have a new exchange-traded fund (ETF) listed on the Nasdaq this week. The stock exchange will be listing Valkyrie’s new ‘Bitcoin Mining ETF,’ an investment vehicle that will supply assets that provide exposure to company securities “deriving at least 50% of their revenue or profits” from Bitcoin or crypto mining, or hardware and software related to crypto mining.
Valkyrie… Going To Make It?
Spot Bitcoin and crypto ETFs are yet to hit the market in the U.S., hampered by the SEC’s timid approach on accepting such ETFs. However, in recent months, the SEC has finally become warm to the idea of future’s ETFs, starting with the ProShares ETF and VanEck Bitcoin ETF. Last October was indeed a monumental month for publicly-traded markets and crypto, with Valkyrie joining the likes of ProShares, Invesco, and several other investment firms that sought out crypto-focused ETF offerings.
Valkyrie’s latest ETF, ‘WGMI’ (an homage to famed crypto phrase, “we’re gonna make it”), will start trading at the opening bell for the Nasdaq beginning tomorrow, Tuesday February 8th. Valkyrie has established that 80% of portfolio holdings in the ETF will reflect securities of firms that are generating a majority of their revenue or profit from crypto mining, or from hardware and/or software related to crypto mining. The remaining 20% of the ETF’s net assets will be allocated towards firms that hold “a significant portion of their net assets” in Bitcoin and crypto. The ETF will carry a 0.75% expense ratio.
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Bitcoin has been showing strong signs of righting the ship after a tough start to the new year. Will Valkyrie's latest ETF, and other publicly-traded securities help bolster adoption? | Source: BTC-USD on TradingView.com
What We Can Expect
WGMI is the third in line for Valkyrie’s now-accepted ETFs, following behind the firm’s broad Bitcoin futures ETF and “Balance Sheet Opportunities ETF,” which holds firms that “directly or indirectly invest in, transact in, or otherwise have exposure to bitcoin.”
While we know that this new Valkyrie ETF won’t possess direct crypto holdings, expect some of the biggest mining names to make the cut, such as Hive, Bitfarms, Marathon and more. With the 20% allocated towards firms with substantial net assets in Bitcoin, we could also see the likes of MicroStrategy and other major players make the WGMI holdings. Additionally, the fund has noted that the firm’s holdings use about 77% renewable energy, double the average of common publicly-traded companies.
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