Valkyrie Files for Bitcoin Miners ETF: A New Chapter in Crypto Investment

Valkyrie’s Bold Move

In a recent development that could shake up the crypto landscape, Valkyrie has taken the plunge with an application for a Bitcoin Miners ETF, which is set to debut on the Nasdaq Stock Market.

How It Works

The ETF isn’t your run-of-the-mill investment vehicle. Instead of directly investing in Bitcoin, 80% of its net assets will focus on mining firms—companies that generate at least half of their revenue from BTC mining. This means your bucks are partially going towards those lovely rigs and hardware behind the magic of crypto mining.

What About the Remaining 20%?

Valkyrie hasn’t forgotten about Bitcoin itself. A portion—up to 20%—will be invested in companies holding significant Bitcoin assets. Basically, they’re keeping their options open, blending traditional mining investments with some good old-fashioned Bitcoin allocation.

Looking Back: Valkyrie’s History

If this sounds familiar, it’s because Valkyrie isn’t new to the ETF game. They launched a Bitcoin Strategy ETF back in October 2021 that offered exposure through cash-settled futures contracts. Fast forward to today, and those shares are teetering around $14.93—a stark reminder of the rollercoaster that is the crypto market, with a drop of over 40% since launch.

The SEC’s Stance

Now, here’s where things get interesting. While Valkyrie and other asset managers have been navigating this wild west of crypto ETFs, the SEC has yet to bless a spot Bitcoin ETF in the U.S. Despite several applications, they seem to be dragging their feet, leaving the U.S. behind as countries like Canada are happily approving direct crypto ETFs. It’s a classic tale of “the tortoise vs. the hare”—American regulatory processes seem to be a bit slow on the uptake.

The Global Perspective

At a House committee hearing last December, former Acting Comptroller of the Currency Brian Brooks remarked the U.S. is “unquestionably” lagging behind other nations in the crypto ETF race. While Canadian regulators have rolled out the welcome mat for several crypto ETFs, the U.S. seems to be clutching its pearls. Perhaps they need a little nudge—or maybe a big cup of coffee.

What’s Next?

Valkyrie’s application is just one of many vying for attention in a crowded field. With past proposals, including one from VanEck, the ETF market is heating up, but regulatory decisions will determine who makes it to the finish line. Will the SEC finally make a decision, or will they continue to play the waiting game? Grab your popcorn, folks; this is bound to be an interesting show.