This article comes fromThe Block, original author: Aislinn Keely
Odaily Translator | Nian Yin Si Tang
This article comes from, original author: Aislinn KeelyOdaily Translator | Nian Yin Si Tang
Digital asset management company Valkyrie Digital Assets filed a complaint with the U.S. Securities and Exchange Commission (SEC) on Friday.
Submit a new exchange-traded fund (ETF) application
, the ETF, called the "Valkyrie Innovative Balance Sheet ETF," will invest primarily in companies that hold bitcoin on their balance sheets.
The practice of adding bitcoin to a company's balance sheet has grown in popularity since MicroStrategy's massive bitcoin purchases. Not long after, S&P 500 company Tesla (TSLA) also added Bitcoin to its balance sheet, giving any investor holding an S&P 500 index fund indirect exposure to Bitcoin. Valkyrie’s latest ETF filing is adding another way to gain indirect exposure to bitcoin.
The fund will invest primarily in common stocks but may invest up to 20% of net assets in securities. It plans to focus on investing in bitcoin-related companies, especially those that Valkyrie described as having “innovative balance sheets.”
Similar to JPMorgan Chase's "Cryptocurrency Exposure Basket" released earlier this week, Valkyrie investment advisor KKM Financial will include "direct or indirect investment, trading or otherwise gaining exposure to Bitcoin or operating in the Bitcoin ecosystem." ” companies as part of the Fund’s investments. This could include bitcoin exchanges, miners, custodians, payment companies and wallet providers, according to the S-1 form filed with the U.S. SEC. The ETF plans to list on NYSE Arca (NYSE Accelerator Market).Wall Street investment bank JP Morgan is offering a way for its investor clients to gain exposure to crypto through shares of public companies involved in digital assets, according to a series of regulatory filings with the U.S. SEC. JPMorgan emphasized in the product description that the exposure offered by the product is not directly tied to any particular cryptocurrency, including bitcoin. It is reported that the structured product includes stocks of well-known companies in the cryptocurrency field, such as MicroStrategy, Square, PayPal, Riot Blockchain, Nvidia, AMD, semiconductor giant TSMC (in the form of American depositary shares), Intercontinental Exchange, CME Group, Overstock and Silvergate. The product has a list date of March 26, an original release date of "around March 31, 2021," and an observation and expiration date of May 2, 2022 and May 5, 2022, respectively.But unlike JPMorgan's offering, Valkyrie's newly filed ETF hasn't announced specific companies. And JPMorgan Chase will allocate "half of the basket" to MicroStrategy, Square and Riot Blockchain, three public companies that keep Bitcoin on their balance sheets (excluding Tesla's stock).
In addition to the latest proposed Bitcoin-related ETF,
Valkyrie also filed a Bitcoin ETF application with the US SEC in January this year
. According to a document filed with the U.S. SEC on Jan. 22, Valkyrie’s pending Bitcoin ETF is scheduled to list on NYSE Arca, with the aim of providing investors with a cost-effective and convenient way to invest in Bitcoin. Valkyrie has since joined the army of applications for a Bitcoin ETF, and the Bitcoin ETF application filed by VanEck and CBOE is currently the only one that is about to be decided.
