SEC approves Valkyrie’s mining-focused ETF

Asset-management firm Valkyrie Investments has received approval from the SEC for launching an exchange-traded fund (ETF) based on the stocks of companies that derive at least 50% of their profits from mining Bitcoin.

The firm also includes in this category suppliers of equipment, software, or services for mining operations. The fund’s basket includes:

• with a weight in the range of 8% to 10% — Argo Blockchain, Bitfarms, Cleanspark, Hive Blockchain and Stronghold Digital Mining;
• with a 4% weighting — Marathon Digital, Bit Digital and Digihost Technology.

The listing under the ticker WGMI is set for Tuesday, 8 February on Nasdaq. The company emphasised that the ETF ‘will not invest in Bitcoin directly or indirectly’.

The fund’s management and other expenses amount to 0.75%.

The filing to launch the instrument was submitted by the company in late January 2022. According to the prospectus, the Valkyrie Bitcoin Miners ETF will invest at least 80% of its net assets in the shares of mining companies, with 20% in the shares of enterprises that hold Bitcoin on their balance sheets.

In December 2021, VanEck filed an application to launch a similar product with the SEC.

In October, on Nasdaq began trading Valkyrie Investments’ Bitcoin futures ETF.

The firm also launched an actively managed ETF based on the equity of companies whose cash reserves include digital gold.

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