It is expected that the Valkyrie Bitcoin Miners ETF will invest at least 80% of its net assets in companies that receive at least 50% of their profits from bitcoin mining.
With Bitcoin prices on the rise, a new Bitcoin mining-backed exchange-traded fund (ETF) is expected to go public on February 8. In accordance with reports, the Valkyrie Bitcoin Miners ETF has been approved for listing on the Nasdaq stock exchange, according to a filing with the Securities and Exchange Commission made on Monday (SEC).
Another Bitcoin ETF is set to be listed
Valkyrie Investment filed a post-effective amendment for the Valkyrie Bitcoin Miners ETF on January 26, following which the business requested that the ETF’s effective date be accelerated to January 27. For the time being, the Bitcoin Miners ETF, which will trade under the ticker WGMI on the Nasdaq, will begin trading on Tuesday.
While no direct exposure to Bitcoin (BTC) will be provided by the investment vehicle in a January filing with the Securities and Exchange Commission, at least 80 percent of its net assets will be provided by securities of companies that ‘derive at least 50 percent of their revenue or profits’ from BTC mining or from providing the hardware or software related to mining, according to the filing.
Furthermore, according to the filing, Valkyrie will invest up to 20 percent of the ETF’s net assets in companies that have a’significant amount of their net assets’ invested in Bitcoin.
According to reports, Nasdaq joined the request in the late hours of Monday, after the exchange approved the fund’s listing on the platform. Similarly, Valkyrie CEO Leah Wald was quoted as claiming that the company’s application to the Securities and Exchange Commission (SEC) to create the exchange-traded fund was motivated by “an increased attention and demand from investors to obtain exposure to Bitcoin miners.”
Is Bitcoin on its way to another bull run?
Early in October 2021, Valkyrie became the second asset management to offer a Bitcoin Futures ETF on the New York Stock Exchange, following the ProShares Bitcoin Strategy ETF (BITO) that debuted on the New York Stock Exchange a few months earlier. At the time, the approval of a prospective Bitcoin exchange-traded fund (ETF) provided a significant boost to Bitcoin spot prices, initiating a BTC bull run.
Because of its rapid growth, BITO was among the top 15 ETF launches of all time after transacting $250 million in shares in its first 15 minutes of trading. On the second day, it became the fastest ETF ever to reach $1 billion in assets.
A number of Bitcoin futures exchange-traded funds (ETFs) have been approved in the recent year, and the significant market interest in the ETFs is indicative of growing institutional interest in the asset. The same can be said about the fact that BTC’s long-term narrative as an investment vehicle has been strengthened.
Bitcoin’s current price, which was $44,319 at the time of publication, has increased by more than 15.61 percent in the previous week. The resurgence of Bitcoin’s price has also inspired significant retail interest, as evidenced by the significant increase in trading volumes. Furthermore, as a result of the BTC advances, the worldwide cryptocurrency market capitalization has once again surpassed $2 trillion, representing a 6.43 percent increase over the previous day.