Crypto-asset manager Valkyrie has filed an application with the U.S. Securities and Exchange Commission to trade an exchange-traded fund (ETF) with exposure to Bitcoin mining companies on the Nasdaq stock market.
In a Wednesday SEC filing, Valkyrie said its Bitcoin Miners ETF would not invest directly in Bitcoin (BTC), but at least 80% of its net assets would provide exposure to the crypto asset through the securities of companies that “ten at least 50% of derived “their income or profits” from BTC mining or the provision of hardware or software related to mining. The submission added Valkyrie will invest up to 20% of the ETF’s net assets in companies that hold “a significant portion of their net assets” in Bitcoin.
Valkyrie launched a Bitcoin Strategy ETF in October 2021, which provided indirect exposure to BTC with cash-settled futures contracts following SEC approval for a similar ProShares ETF. At the time of publication, shares of the fund were trading on the Nasdaq for $ 14.93, having fallen more than 40% since opening on October 22nd.
In 2021, the SEC approved for the first time investment instruments linked to BTC derivatives, but did not give the green light to any Bitcoin spot exchange traded fund in the United States. The Valkyrie Bitcoin Miners ETF looks like the Digital Asset Mining ETF proposed in December 2021 by asset manager VanEck, which plans to invest 80% of its total assets in securities of crypto-mining companies – the regulatory body has until February 14 to decide to take over the fund or extend the deadline.
Related: Why now? SEC takes eight years to authorize a Bitcoin ETF in the US
While many crypto-ETF applications are still being considered in the United States, Canadian regulators have approved ETFs with direct exposure to crypto from Fidelity, Purpose Investments and Evolve Fund Group. At a House of Representatives committee hearing in December, former Currency Acting Auditor Brian Brooks said the United States is “undeniably” behind other countries in approving crypto-ETFs.