Valkyrie Funds to Liquidate Bitcoin-Related ETF Amid Market Adjustments

Valkyrie Funds Announces Liquidation of ETF

Valkyrie Funds, a prominent cryptocurrency fund manager based in the United States, has revealed plans to liquidate its Valkyrie Balance Sheet Opportunities ETF, which offers indirect exposure to Bitcoin (BTC). The announcement was made on October 11, with the ETF slated for delisting from the Nasdaq Exchange on October 31, 2022.

Shareholder Instructions

As part of the liquidation process, shareholders holding Valkyrie Balance Sheet Opportunities ETF shares will be able to sell their holdings until the end of the trading day on October 28, 2022. For those who do not sell their shares by the deadline, a cash distribution equal to the net asset value of their shares will be issued upon the fund’s liquidation.

Rationale Behind the Decision

Valkyrie stated that the decision to liquidate the ETF results from a comprehensive review of its product offerings, indicating the firm’s aim to align with client demand and market conditions. In their statement, Valkyrie noted, “This action was taken after thorough consultation with the Firm’s Board of Directors and comes after it was determined that discontinuing the fund was the best course of action for all involved.”

Valkyrie’s Footprint in the Cryptocurrency ETF Market

Despite the closure of the Balance Sheet Opportunities ETF, Valkyrie Funds continues to play a significant role in the U.S. cryptocurrency ETF landscape. The company launched one of the pioneering Bitcoin futures ETFs in the country, known as the Valkyrie Bitcoin Strategy ETF (BTF), in October 2021 after receiving SEC approval.

Alternative ETFs Still Operational

Alongside the BTF, Valkyrie also oversees the Valkyrie Bitcoin Miners ETF (WGMI), which was initiated in February 2022. This fund tracks the securities of companies that derive revenue from Bitcoin mining, capturing about 80% of its assets from that sector.

Conclusion

The impending liquidation of the Valkyrie Balance Sheet Opportunities ETF points to ongoing adjustments in the cryptocurrency investment landscape as firms navigate current market conditions. As Valkyrie continues to manage its other funds, stakeholders will be watching closely how the broader crypto market evolves throughout the year.