On Dec. 15, crypto firm Valkyrie Investments — which recently launched the second Bitcoin-futures exchange traded fund (ETF) — launched the Balance Sheet Opportunities ETF, trading as VBB on Nasdaq, “to meet the rising demand for crypto investing in an easy way.”
The fund is an actively managed ETF that invests in innovative public companies with exposure to Bitcoin: companies that directly or indirectly invest in, transact in, or otherwise have exposure to Bitcoin, per the fund’s prospectus.
“This fund is meant to satisfy the needs of any investor that wants to invest in companies with exposure to Bitcoin without the risks of holding spot Bitcoin such as security, custody, a lack of familiarity with various trading venues, and more,” Brian McQuade, director of business development at Valkyrie Investments, told GOBankingRates.
McQuade explained that the launch was prompted by a series of discussions with investment and financial advisors. The topic? How to best meet the rising demand for crypto investing in a familiar, easy to understand product that is available in traditional investment and retirement accounts.
“Also, this is a product that aligns well with our philosophy of bringing crypto asset investments to the broader public, and with our belief that companies holding Bitcoin on their balance sheet may outperform those that don’t,” McQuade said.
VBB’s top holdings include MicroStrategy, Block, Coinbase, Tesla, Global, Paypal, MasterCard, BlackRock and Robinhood, according to the fund’s brochure.
“The Fund will not invest in bitcoin directly or indirectly through the use of derivatives. Investors seeking direct exposure to the price of bitcoin should consider another investment other than the Fund,” the prospectus continues.
In October, the firm launched the Valkyrie Bitcoin Strategy, which is trading on the Nasdaq under the ticker BTF. That fund aims to solely track the value of Chicago Mercantile Exchange (CME) Bitcoin futures, according to Valkyrie. Bitcoin futures, which are agreements to buy or sell an asset in the future at a specific price, are fully regulated in the U.S. on the CME. The goal of the fund — which does not invest directly in Bitcoin — is to track the value of these products in a liquid basket of securities. “By doing so, BTF provides exposure to a wider audience of investors, advisors and more, without the pitfalls and hurdles typically associated with investing directly in crypto assets,” the company said in a statement.
And in November, Valkyrie launched a decentralized finance (DeFi) fund “off the back of client demand.”
“The Valkyrie Onchain DeFi fund, in addition to investing in the DeFi tokens, holds our assets on-chain,” CEO Leah Wald told GOBankingRates at the time. “This allows us to participate in the upside, while gaining additional yield from lending, liquidity pools, farming & staking in the on-chain DeFi ecosystem. We get the appreciation plus the compounded yield generated from on-chain DeFi participation. In addition to investing in DeFi tokens, the fund will hold assets on-chain.”
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