At least 80% of the investment’s net assets are represented by securities that derive “at least 50% of their revenue or profits” from Bitcoin mining.
Valkyrie, a crypto asset manager, will launch an exchange-traded fund (ETF) with exposure to Bitcoin mining firms on the Nasdaq Stock Market on Tuesday.
According to a Valkyrie spokesperson, the firm’s Bitcoin Miners ETF will begin trading on the Nasdaq on Tuesday under the ticker WGMI. According to a filing with the Securities and Exchange Commission on January 26, the investment vehicle will not provide direct exposure to Bitcoin (BTC), but at least 80% of its net assets will be through securities of companies that “derive at least 50% of their revenue or profits” from BTC mining or providing mining-related hardware or software. According to the filing, Valkyrie will invest up to 20% of the ETF’s net assets in companies that hold “a significant portion of their net assets” in Bitcoin.
Valkyrie’s offering is similar to VanEck’s Digital Asset Mining ETF, which was proposed in December. The asset manager stated that it intended to invest 80 percent of its total assets in securities issued by crypto mining firms, with the SEC expected to make a decision on the fund or extend the deadline by February 14.
When it launched its Bitcoin Strategy ETF in October, Valkyrie became one of the first asset managers to offer indirect exposure to cryptocurrency through cash-settled contracts. At the time of publication, shares of the fund were trading on the Nasdaq for $17.01, up more than 20% from Thursday’s low of $14.12.
Despite criticism from some lawmakers and industry leaders that a lack of regulatory clarity is holding the country back on the global stage in terms of innovative investment vehicles, the SEC has not approved Bitcoin spot ETFs in the United States. In contrast, Canadian regulators approved Fidelity Canada’s Bitcoin ETF and Bitcoin Mutual Fund for listing on the Toronto Stock Exchange in December, while investment firm Purpose’s Bitcoin ETF was approved in February 2021.