2021 saw the first Bitcoin futures exchange traded fund launch (ETF) when Proshares launched their Bitcoin Strategy ETF on October 20. Valkyrie quickly followed suit, launching their own Bitcoin ETF on October 23. Bitcoin subsequently rallied to all time highs following the release of the two ETFs and now Valkyrie has launched a second Bitcoin ETF.
The Valkyrie Balance Sheet Opportunities Bitcoin ETF was just launched on Wednesday, December 15, under the symbol VBB. The new ETF differs from the Proshares futures based ETF in that it exposes investors to a swath of publicly traded companies that directly or indirectly invest in or transact and hold Bitcoin. Some of the largest individual holdings within the ETF are MicroStrategy, Block (formerly Square), Tesla, Coinbase, and PayPal.
Valkyrie’s Balance Sheet Opportunities Bitcoin ETF will allow investors a way to gain indirect exposure to Bitcoin. Valkyrie’s filing with the SEC reveals that the fund may invest up to 10% of its net assets in Bitcoin mining firms and up to 5% in pooled investment vehicles that hold BTC. Valkyrie Funds co-founder Steven McClurg explained that the fund will limit its exposure to mining companies as a hedge against risk from companies that operate directly within the Bitcoin ecosystem.
At the time of this writing, VBB shares were trading for $23.90, down over 2% for the day.
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