Valkyrie files to launch ETF based on Bitcoin-miner stocks

Asset-management firm Valkyrie Investments has filed with the SEC application to launch an exchange-traded fund (ETF) based on shares of companies deriving at least 50% of their profits from mining the first cryptocurrency.

The category also includes suppliers of equipment, software, or services used in mining operations.

According to the prospectus, the Valkyrie Bitcoin Miners ETF plans to invest at least 80% of its net assets in the securities of mining companies, with 20% in shares of issuers that hold digital gold on their balance sheets.

“The ETF will not invest in Bitcoin directly or indirectly, using derivatives or investments in funds and trusts that hold the asset,” the prospectus states.

The investment adviser will be the Valkyrie Funds division. In making decisions, it will not only consider business aspects but also take into account the environmental impact of mining operations.

Up to 80% of the fund’s investments will be directed to companies that use at least 50% of their electricity for mining from renewable sources.

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

Earlier, on Nasdaq began trading the Bitcoin futures ETF from Valkyrie Investments.

The company also launched an actively managed ETF based on the shares of companies whose financial reserves include digital gold.