Valkyrie Launches Balance Sheet Opportunities ETF With Bitcoin Exposure, Targets “Growing Demand For Crypto Investments In A Simple Way”


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On December 15, crypto firm Valkyrie Investments – which recently launched the second Bitcoin futures exchange-traded fund (ETF) – launched the Balance Sheet Opportunities ETF, traded as VBB on the Nasdaq, “to respond to the growing demand for crypto investments in an easy environment. path.”

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The fund is an actively managed ETF that invests in innovative public companies exposed to Bitcoin: companies that directly or indirectly invest in, transact or otherwise have exposure to Bitcoin, in accordance with the fund’s prospectus.

“This fund is intended to meet the needs of any investor who wants to invest in companies exposed to Bitcoin without the risks of holding Bitcoin cash such as security, safekeeping, unfamiliarity with various trading platforms, 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 advisers. The subject? How to best meet the growing demand for crypto investments in a familiar and easy-to-understand product that is available in traditional investment and retirement accounts.

Related: Bitcoin Backed Mortgage Product To Launch In 2022 With $ 70 Million Funding Round

“In addition, this is a product that aligns well with our philosophy of providing investments in crypto assets to the general public, and with our belief that companies with Bitcoin on their balance sheets can outperform those that do not. ‘don’t, “McQuade said.

VBB’s main 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 derivatives. Investors looking for direct exposure to the price of bitcoin should consider an investment other than the Fund, ”the prospectus continues.

In October, the company launched the Valkyrie Bitcoin strategy, which trades on the Nasdaq under the ticker BTF. This fund aims to track only the value of Chicago Mercantile Exchange (CME) Bitcoin futures, according to Valkyrie. Bitcoin futures, which are agreements to buy or sell an asset at a specific price, are fully regulated in the United States on the CME. The objective 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, advisers and more, without the pitfalls and obstacles typically associated with investing directly in crypto assets,” the company said in a statement.

Learn: Bitcoin-Focused NYDIG Raises $ 1 Billion to Accelerate ‘Bitcoin for All’ Mission: Company Valued at $ 7 Billion
Explore: Bitcoin Bulls Advocates For Crypto As A Hedge Against Soaring Inflation

And in November, Valkyrie launched a decentralized finance fund (DeFi) “on customer demand.”

“The Valkyrie Onchain DeFi fund, in addition to investing in DeFi tokens, holds our on-chain assets,” CEO Leah Wald told GOBankingRates at the time. “This allows us to participate in the upside, while also getting extra return through loans, cash pools, farming, and staking in the on-chain DeFi ecosystem. We get the appreciation plus the compound return generated by the on-chain DeFi stake. In addition to investing in DeFi tokens, the fund will hold on-chain assets.

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About the Author

Yael Bizouati-Kennedy is a former full-time financial journalist and has written for several publications, including Dow Jones, The Financial Times Group, Bloomberg and Business Insider. She has also worked as a vice president / senior content writer for large New York-based financial firms including New York Life and MSCI. Yael is now a freelance writer and most recently co-authored the book “Blockchain for Medical Research: Accelerating Trust in Healthcare”, with Dr Sean Manion. (CRC Press, April 2020) She holds two master’s degrees, one in journalism from New York University and one in Russian studies from Toulouse-Jean Jaurès University, France.


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