According to a regulatory filing published earlier today, Valkyrie is launching a new crypto ETF focused on equities that invest in bitcoin. The actively managed Balance Sheet Opportunities ETF (VBB) will include companies like MicroStrategy, Square, Tesla, and other firms.
This is Valkyrie’s second crypto-focused ETF; in November, it launched the Valkyrie Bitcoin Strategy ETF (BTF), a bitcoin futures fund. “Futures mostly appeal to hedge funds and momentum traders,” Valkyrie CIO Steve McClurg said in an interview with CoinDesk. “The reality is there’s a lot of financial advisors that can’t actually use it in their platform.”
More than 80% of financial advisors are being asked about cryptocurrencies, according to a recent survey from the Financial Planning Association, but many struggle to effectively allocate clients to this asset class. With more than a dozen publicly traded companies in the U.S. already holding bitcoin, according to data from BuyBitcoinWorldwide, and more corporations, countries, and other entities entering the space with each passing day, investing in these companies provides the kind of indirect exposure that many individuals are seeking.
A spot bitcoin fund still remains out of reach, with the SEC shooting down VacEck’s spot ETF last month. VBB offers exposure to companies that are holding bitcoin on their balance sheets, as well as firms that are bullish on the crypto space, such as BlackRock, which recently disclosed investments in bitcoin futures.
The new fund promises to allow investors to maintain diversification, and the fund is anticipated to track closer to the spot price of bitcoin.
“Bitcoin and digital assets are seeing increasing interest from all corners of the globe,” said Leah Wald, CEO at Valkyrie. “The companies with exposure to bitcoin read the tea leaves and have decided to take action in an attempt to preserve their value, but also as another means to potentially generate more returns for shareholders in the decades to come.”
More than half of U.S. bitcoin holders first got into the cryptocurrency this year, according to a recent study, and 59% of investors are interested in bitcoin investments, an increase from only 36% just two years ago. VBB offers another avenue for investors to be able to gain exposure to this rapidly growing asset class.
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