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Valkyrie Starts Trading Bitcoin Futures ETF on the Nasdaq Stock Exchange

Valkyrie Investments started trading its Bitcoin futures Exchange-Traded Fund (ETF) on the Nasdaq stock market on early Friday, October 22, after getting approval from the US Securities and Exchange Commission (SEC) earlier last week.

Valkyrie Funds Chief Executive Officer, Leah Wald, talked about the development and said: “For us, Nasdaq was the obvious choice for our first ETF. When looking at potential listing partners, it makes sense to choose an innovation-focused, technology-first venue that has been at the forefront of the crypto revolution.”

The new Valkyrie fund, popularly known as the Bitcoin Strategy ETF, went live on the Nasdaq exchange under the ticket BTF when stock markets opened at 9:30 am on Friday, but premarket trading began earlier.

Although after a few hours of trading, the Valkyrie Bitcoin futures ETF was trading at $24.0, down 4% from the initial price, the stock recovered some of its values to finish at $25 per share by the end of trading.

The ProShares ETF, BITO, also fell on Friday, down 4.4% to trade at $39.04 per share.

Wald explained why some investors prefer owning a Bitcoin futures ETF over a physical Bitcoin, stating that the former is a CME regulated asset, but the latter is not.

“There is more efficient price discovery, and it does satisfy concerns around wash trading and inaccurate data. Lastly, there is no need to worry about risks around security and custody with the full faith of the SEC-regulated Nasdaq-traded ETF,” Wald stated.

Valkyrie partnered with US Bank Global Fund Services limited to offer custodial services to the Valkyrie Bitcoin futures ETF.

Bitcoin ETF Opens with Gains

The Valkyrie Bitcoin Strategy fund is the first crypto futures linked ETF on Nasdaq, thus joining more than 499 listed ETFs already trading on the exchange. Nasdaq offers a trusted execution platform with reliable regulatory expertise, advocacy, and market structure.

After several months of waiting, the crypto sector is finally getting the US ETFs, which fund executives have long sought as a way of attracting money from investors who want exposure to Bitcoin price via the stock market.

Although crypto analysts view Bitcoin futures ETFs as less ideal than physical Bitcoin ETFs, such new products have received overwhelming reception among investors.

As reported by Blockchain.News on October 19, the first US Bitcoin futures ETF (the ProShares Bitcoin strategy EFT) went live on Tuesday last week and attracted more than $1 billion of assets in just two days after the launch. The fund is the fastest-ever ETF to hit such a milestone.

While Valkyrie fund is the second Bitcoin Futures ETF now trading in the public market, VanEck’s Bitcoin futures ETF is expected to begin trading this week.

The US SEC Asks Valkyrie to Withdrawal Its Leveraged Bitcoin Futures ETF

The U.S. Securities and Exchange Commission (SEC) does not want to approve the listing of leveraged Bitcoin exchange-traded funds (ETFs).

The announcement comes two days after Valkyrie Investments filed with the SEC to allow the firm to offer a 1.25x leveraged Bitcoin futures ETF.

As a result, the SEC has instructed at least one asset management firm not to proceed with its plans for leverage funds.

It appears that the regulator wants to limit Bitcoin-related investment machines to funds that offer unleveraged exposure – products that are not comprised of borrowed funds.

In other words, the agency wants to restrict crypto investors to invest in products by offering unleveraged exposures like the ProShares Bitcoin ETF.

ProShares, which started trading the first-ever U.S. Bitcoin ETF last week on Tuesday, October 19, does not directly hold or invest in actual Bitcoin but invests in Bitcoin futures contracts.

After Valkyrie launched its Bitcoin futures backed ETF last Friday, October 22, the investment firm sent another application to the SEC for a leveraged Bitcoin futures ETF that offers 1.25x exposure to the Bitcoin reference rate. This implies that Valkyrie’s proposed fund wants to enhance daily returns of a portfolio of Bitcoin futures for U.S. investors by using 1.25 times leverage or borrowed money.

The SEC has declined to approve such a request. And as a result of a response by asking Valkyrie to withdraw its application, it filed on Tuesday, October 26.

Valkyrie’s proposed fund is aimed at investors with high-risk tolerance, providing Bitcoin futures with 1.25x leverage.

However, such a tough decision by the SEC will not affect Valkyrie’s unleveraged Bitcoin futures ETF, which started trading last week on Friday, October 22.

It is unclear whether Valkyrie will continue pursuing approval of its leveraged Bitcoin futures ETF. In the past, many investment firms have repeatedly tried to gain SEC’s approval for their proposed ETFs.

Concerns Overs Leveraged Exchange-Traded Funds

The move by the SEC shows another regulatory opposition to innovative products that asset management firms in the nascent cryptocurrency industry face.

As reported by Blockchain.News: The SEC has hesitated to allow offerings that it believes might be vulnerable to manipulation, fraud, and other risks.

On October 4, SEC chairman Gary Gensler stated that leveraged exchange-traded funds, much moved by retail investors, could pose a systematic threat to the financial system.

Gensler instructed SEC staff to study the universe of risky exchange-traded products and consider regulations to protect individual investors during that time.

The SEC boss warned that such products are popularly known as “complex ETPs” can pose risks to individual investors and even sophisticated investors and potentially create system-wide risks by operating in unanticipated ways when markets experience stress conditions or volatility.

Gensler was referring to “inverse” ETFs that mimic the opposite of an asset’s performance or leveraged funds that multiply gains or losses.

US SEC Delays Decision on Valkyrie Bitcoin Spot ETF Proposal Until 2022

The US Securities and Exchange Commission (SEC) has once again delayed approving a proposed exchange-traded fund (ETF) backed by physical Bitcoin applied by Valkyrie Investments Inc.

The SEC made an announcement on Monday, November 1, stating that it has extended the deadline for its decision to January 7 2022.

“The Commission finds that it is appropriate to designate a longer period within which to issue an order approving or disapproving the proposed rule change so that it has sufficient time to consider the proposed rule change and the issues raised in the comment letters that have been submitted in connection therewith,” the SEC noted.

The regulator recently set December 8 as the deadline for determining approval or rejection of Valkyrie’s proposed Bitcoin spot ETF.

The agency has pushed back a decision on Valkyrie’s fate to January 7 2022, on a proposed rule change that would clear the way for the Bitcoin fund.

Although the SEC has approved the listing of Bitcoin ETFs tied to the futures market, it is yet to approve funds that provide direct exposure to the underlying asset itself.

The SEC recently made a historical record by approving the first and second Bitcoin futures ETF in the US market. However, it appears that the trading of the two Bitcoin futures ETFs (the Valkyrie Bitcoin Strategy ETF and the ProShares Bitcoin Strategy ETF) has not brought the SEC any closer attention to approving ETFs based on spot Bitcoin.

The Valkyrie Bitcoin Fund is a physical bitcoin (spot) ETF, which is fundamentally different from futures ETFs such as the Valkyrie Bitcoin Strategy ETF, which gives customers shares tied to a series of contracts to buy Bitcoin in the future.

Like the Valkyrie Bitcoin Fund, Bitcoin spot ETF gives customers shares backed by the underlying asset – in this case, physical Bitcoin.

This means that a physical bitcoin ETF faces different approval procedures from the market regulator and a different regulatory challenges.

Futures Highlight Coming of Physical Bitcoin ETFs

The US SEC has still not approved of the ETFs trading Bitcoin itself because of regulatory concerns, including issues around custody.

The SEC chairman Gary Gensler recently signalled preference towards futures-based funds over physical Bitcoin ETFs, citing the investment company Act of 1940 as a rule that provides significant investor protections for Bitcoin futures-based products.

However, the Bitcoin ETF marketplace is rapidly evolving, with the futures-based ETFs most recently receiving SEC’s approvals, which set the ground for the regulator likely to approve soon ETFs that directly own and track the prices of Bitcoin itself.

With the new approach given by the new SEC chairman, the SEC’s uncertainty (volatility, potential manipulation, and thin liquidity) associated with spot Bitcoin ETF appear to be fading.

While approval of an exchange-traded fund backed by physical Bitcoin is on the way but is still far, that may happen at least middle of next year.

Valkyrie Files Application to List Bitcoin ETF Focusing on Mining Firms

American asset and index fund manager Valkyrie has filed an application with the United States Securities and Exchange Commission (SEC) to list a Bitcoin Exchange Traded Fund (ETF) product that will track the shares of companies directly invested in Bitcoin mining.

Per the company’s filing, the fund is named Valkyrie Bitcoin Miners ETF, and it is billed to trade on the Nasdaq Exchange under the ticker symbol WGMI.

Valkyrie said as much as 80% of the funds from the ETF would be injected into outfits like Argo Blockchain, Marathon Digital, and other outfits that manufacture the hardware that is directly utilized in cryptocurrency mining. The company said the fund would not invest directly in Bitcoin but that as much as 20% of the fund will be used to invest in companies that hold Bitcoin on their balance sheets. This condition places MicroStrategy Incorporated, Block Inc and Tesla Inc as candidates.

Valkyrie published a set of risk statements regarding the proposed ETF as a note of caution. The filing reads:

“As with all investments, there are certain risks of investing in the fund. The Fund’s Shares will change in value, and you could lose money by investing in the fund. An investment in the fund does not represent a complete investment program. An investment in the fund is not a bank deposit, and it is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency, the Adviser, Sub-Adviser, or any of their affiliates. You should consider carefully the following risks before investing in the fund.”

Valkyrie is an experienced Index manager whose Bitcoin ETF that tracks Bitcoin futures was amongst those approved by the SEC last year. While the company has an experienced team backing its products to DeFi, Valkyrie is optimistic this new application will be granted.

Valkyrie Bitcoin Mining ETF to List on Nasdaq

An exchange-traded fund focused on Bitcoin mining from the American asset and index fund manager Valkyrie will list on the Nasdaq on February 8 under the ticker symbol “WGMI.”

WGMI is short for “WAGMI,” referring to crypto nomenclature for “we’re all gonna make it.” WGMI will begin trading Tuesday on the Nasdaq.

According to Blockworks, the latest launch of ETF would be concentrated on Bitcoin mining operators with an emphasis on sustainability. It invests in publicly traded miners operating renewable energy as their major energy source and carries an expense ratio of 75 basis points.

Approximately 77% of the energy consumed by the companies in the ETF, is from renewable energy sources such as solar, wind, hydropower and geothermal. Most are US-based businesses, despite some firms are Canada and the UK-based.

As reported by blockchain.News on Jan 27, the American asset and index fund manager Valkyrie has filed an application with the United States Securities and Exchange Commission (SEC) to list a Bitcoin Exchange Traded Fund (ETF) product that will track the shares of companies directly invested in Bitcoin mining.

Valkyrie is knowns as an experienced Index manager whose Bitcoin futures ETF has been approved by the US Securities and Exchange Commission (SEC) last year. CEO Leah Wald said the fund will invest 80% or more of its net worth in companies that make at least half of their profits from bitcoin mining and related activities.

Although the SEC has approved the listing of Bitcoin ETFs tied to the futures market, it is yet to approve funds that provide direct exposure to the underlying asset itself. In November of last year, The US SEC has once again delayed approving a proposed exchange-traded fund (ETF) backed by physical Bitcoin applied by Valkyrie Investments Inc. Since November, six applications for bitcoin ETFs have been rejected by the SEC, including applications from VanEck, WisdomTree and SkyBridge Capital.

Since the first Bitcoin futures ETF- ProShares- has been listed on New York Stock Exchange (NYSE) last year, the market expects the financial regulator to open green light for more Bitcoin futures ETF products available in the market, even Bitcoin direct-related ETFs for trading.

The US Securities and Exchange Commission (SEC) is asking for public comment on whether ETF directly tied to the price of bitcoin could be a fraudulent vehicle, according to Bloomberg reported on Feb. 7.

Yet, the authority also expressed fiduciary concerns in exchange for holding the token. Concerns, especially for Grayscale Bitcoin Trust (ticker GBTC), currently the largest bitcoin holding.

Valkyrie Investments Floats New AVAX Dedicated Trust

Valkyrie Digital Assets, one of the first asset managers to float a Bitcoin Futures ETF in the US, has launched a new Trust dedicated to granting investors exposure to Avalanche (AVAX) blockchain and underlying cryptocurrency respectively.

As contained in the official announcement, the Trust, dubbed the Valkyrie Avalanche Trust (VAVAX), will invest solely in AVAX coins while also taking some of the fund’s capital to generate additional income for all subscribers.

“AVAX is growing rapidly in terms of adoption, largely as a result of its blazing fast transaction speeds,” said Valkyrie Investments CIO Steven McClurg. “By launching this trust, we are able to give qualified investors exposure to a protocol that they have been increasingly asking about as DeFi projects, NFT platforms, and many other projects have increasingly begun to build on the Avalanche blockchain.”

As a prominent investment manager, Valkyrie has a very robust portfolio of related trusts it has floated in the past. These include but are not limited to the Valkyrie Bitcoin Trust, the Valkyrie Algorand Trust, the Valkyrie Polkadot Trust, the Valkyrie Dash Trust, and the Valkyrie TRON Trust. Besides launching these funds based on the innovation the cryptocurrencies and their underlying blockchains embody, they are also floated based on popular demand.

AVAX checked the box for these two factors as the blockchain is termed the fastest in the industry as measured by Time-to-Finality. It has been growing as a hub for developers looking to build applications on an energy-efficient platform that charges relatively lower fees than its competitors.

“Avalanche is pioneering the movement toward mass adoption of blockchains with low fees, near-instant transaction finality, and an eco-friendly platform,” said John Wu, President of Ava Labs, adding that “with the launch of the Avalanche Valkyrie Trust, institutions will have another reliable avenue to tap into the innovation happening across the community.”

The attractiveness of AVAX is even higher at this time as the blockchain protocol has been amassing massive funding to bolster its ecosystem growth.

Valkyrie Establishes $30m Venture Fund, Investing in Crypto & Web3 Projects

Crypto asset management firm Valkyrie is launching a new financial investment product. The Tennessee-based company announced on Tuesday that it is moving into venture capital with plans to raise a $30 million fund by investing in early-stage startups in Israel.

In April, the firm hired Lluis Pedragosa, a renowned venture capital expert, to lead Valkyrie Ventures. Pedragosa is a veteran of Israel’s VC scene who is the founder and former partner of cybersecurity-oriented Israeli VC Team8, which focuses on enterprise technologies, artificial intelligence, and fintech.

Valkyrie will geographically focus on startups in Israel and the US, with plans to invest in startups seeking to bridge the gap to web3 for average users.

Filling in the gap between the ordinary web2 user experience and connection to web3 assets is the path to the next billion users of blockchain, Pedragosa said.

Besides efforts to back firms developing web3 user experience, Valkyrie Ventures fund also plans to invest $250,000 to $1 million in behind-the-scenes infrastructure firms building secure blockchain infrastructure and building crypto products.

Pedragosa said Valkyrie has already invested in a Web3 startup, “Bunches, ” which is developing a messaging platform for wallets.

The company added that Valkyrie will provide Israeli startups access to the U.S. market. Valkyrie is a Tennessee-based firm with a largely U.S.-based network of contacts and clients that will help “bridge the gap” for Israeli startups, Pedragosa explained.

The Valkyrie fund seeks to raise somewhere between $30 million and $50 million. The announcement comes amid a significant downturn in the industry. The current market turbulence has prompted several firms to slash their valuations, declare bankruptcy or even close shops. Pedragosa said that is not a huge concern. He said market bears have historically been a time for building in the industry.

Crypto Venture Capital Funding Surging

Valkyrie’s announcement comes at a time when several firms continue to splash capital into crypto venture funds.

Last year, venture capitalists bet big on crypto startups, investing more than $27 billion worldwide as of late November, more than in the past 10 years combined.

Many of the investments were facilitated by the venture capital arms of crypto firms, businesses whose continued growth depends on the expansion of the ecosystem.

Likewise, Coinbase and other crypto firms envision that blockchain technology will lead to the evolution of the internet and how the world moves from Web 2.0 to Web5.

The dominance of big tech over internet use and its control over personal data has led to calls for the net’s decentralization. The third iteration of the internet – Web3 – will be defined by open-source technology, using blockchain technology to be permissionless and trustless.

In January, FTX crypto exchange launched a $2 billion venture fund, one of the largest investment vehicles to date, aiming to tap into the crypto market’s startups.

Coinbase Ventures, the investment arm of the Coinbase crypto exchange, is backing firms building infrastructures like blockchain network services, and crypto financial services, including metaverse, where users buy and sell digital goods for their virtual lives like NFTs.

Valkyrie's Two Crypto-focused Trusts Raise $73.6m

Two crypto-focused trusts owned by digital asset manager Valkyrie have raised $73.6 million.

One cryptocurrency trust, the Valkyrie Tron Trust, launched last year to offer accredited investors access to the TRX cryptocurrency.

According to an amended filing with the SEC, the fund has secured a $50 million investment fund from investors.

Another cryptocurrency trust is a new trust launched in May, Valkyrie Avalanche Trust, dedicated to providing investors with separate exposure to the Avalanche (AVAX) blockchain and the underlying cryptocurrency.

The report shows the trust has now raised nearly $24 million, slightly less than the $25 million Valkyrie said in May had raised for the then-newly announced trust.

Valkyrie spokesperson comments on the two cryptocurrencies trust fund that:

“Tron has gained significant traction because the Tron network continues to see continued transaction growth, including for stablecoins, and investors familiar with the Asia-Pacific region have started taking notice. Avalanche is also seeing increased adoption at a substantial rate, including earlier this week when KKR announced a deal with Securitize to tokenize a piece of a private equity fund on the Avalanche blockchain.”

Valkyrie Digital Assets was one of the first asset managers to launch a Bitcoin futures ETF in the U.S. with a very robust underlying trust portfolio.

These include, but are not limited to, the Valkyrie Bitcoin Trust, the Valkyrie Algorand Trust, the Valkyrie Polkadot Trust, the Valkyrie Dash Trust, and the Valkyrie TRON Trust. In addition to launching these funds based on the innovation embodied in cryptocurrencies and their underlying blockchains, they also float based on popular demand.

Valkyrie is knowns as an experienced Index manager whose Bitcoin futures ETF was approved by the U.S. Securities and Exchange Commission (SEC) last year.

In July, crypto asset manager Valkyrie launched a new financial investment product. The Tennessee-based company has announced that it is entering the venture capital arena with plans to raise a $30 million fund by investing in early-stage startups in Israel.

CoinShares Acquires Valkyrie ETF Business, Expanding U.S. Footprint

CoinShares, a leading European investment firm specializing in digital assets, has announced the completion of its strategic acquisition of Valkyrie Funds LLC, an investment advisory business of Valkyrie Investments Inc., and the Sponsor rights to the Valkyrie Bitcoin Fund, a physically-backed Bitcoin ETF. This acquisition is a significant leap in CoinShares’ U.S. expansion strategy, increasing its global assets under management (AUM) to approximately $7.3 billion as of March 11, 2024.

The acquisition follows CoinShares’ entry into an agreement in November 2023, granting the company an exclusive option to acquire Valkyrie. This move was cemented following Valkyrie Investments’ successful launch of the Valkyrie Bitcoin Fund in January 2024. The addition of Valkyrie’s $530 million AUM bolsters CoinShares’ position in the market, marking the company as a top contributor from day one.

CoinShares plans to rebrand Valkyrie as its U.S. asset management platform, focusing on innovative products that differentiate itself in the market. Valkyrie’s existing regulatory licenses complement CoinShares’ U.S. permissions, laying a solid foundation for the expansion of its asset management plan in the U.S. The company aims to offer forward-looking thematic asset management, leveraging the success of unique thematic products such as $WGMI — the highest-performing non-leveraged ETF in 2023 across all sectors — and the newly introduced $BTFX, a 2x leveraged bitcoin futures ETF.

Jean-Marie Mognetti, CEO of CoinShares, remarked on the acquisition, emphasizing the U.S. as a critical market for any asset manager. He noted that the acquisition not only adds significant AUM but also broadens product offerings, strengthens innovation capacity, and increases the total addressable market by a factor of 15.

Frank Spiteri, Head of Asset Management at CoinShares, highlighted the company’s consistent demonstration of trust and reliability with its crypto products and services since 2014. He reaffirmed CoinShares’ commitment to serving as both leaders and educators in the crypto space, supported by a seasoned research team and innovative solutions.

As part of the acquisition, CoinShares has initiated the process of seamlessly blending Valkyrie into its portfolio of brands. This strategic integration is expected to be finalized by the summer, unifying the product lineup across the entire CoinShares ecosystem and reinforcing brand consistency and awareness in the U.S.

The final purchase price of the acquisition will be settled at the end of a three-year earnout period and is dependent on the financial results of the acquired business. Technical details of the acquisition include customary vendor and purchaser representations signed on March 12, 2024.

CoinShares continues to solidify its reputation within the digital assets market, focusing on delivering a broad range of financial services across investment management, trading, and securities. With its expansion into the U.S. market, CoinShares is poised to deliver significant value to its stakeholders, including corporations, financial institutions, and individuals.

As the digital asset landscape evolves, CoinShares’ acquisition of Valkyrie ETF Business represents a pivotal point in the company’s growth strategy, signaling a stronger global presence and a deepened commitment to product innovation and market differentiation.