Valkyrie Proposes ETF For Investing In Companies That Hold BTC

Valkyrie proposes ETF for investing in companies that hold BTC so it means that you can purchase stocks in these companies or simply purchase a fund that will do it for you. In today’s Bitcoin news, we are reading more about the new proposal.

The basic concept behind Valkyrie’s Innovative Balance Sheet ETF is pretty interesting and the crypto investment firm filed a prospectus with the Securities and Exchange Commission already. As the name suggests, an ETF is an investment product that is comprised of bonds, stocks, and commodities traded on an exchange such as shares. ETFs can be easily traded over the day and this makes them quite desirable to investors. Similar to JPMorgan Chase, the crypto exposure basket that is promoted by the investment bank, Valkyrie’s investment product will eye stocks from companies that invest in, transact or have some kind of exposure to BTC or operate within the BTC ecosystem.

Valkyrie proposes ETF to the SEC for the second time already and according to the filing, the fund could invest in companies of all sizes like non-US companies and it will invest in common stocks as well. The SEC has yet to approve the Bitcoin exchange-traded fund despite rejecting companies that already proposed one.

The applications for BTC ETFs were unsuccessful so far but the new Biden administration could change this. Valkyrie Digital Assets is the crypto subsidiary of the investment company Valkyrie Investments as it filed an application for a BTC ETF with the US Securities and Exchange Commission. The application filed recently made it the second company to apply for an ETF after VanEck resubmitted the application last month.

The BTC ETF is a financial product that is listed on the stock market that tracks the underlying price of BTC. The advantage of the exchange-traded fund for investors would be that they invested in tax-sheltered accounts and are available for retail investors as well as the accredited investors and will handle the custody of BTC on behalf of the investors. It is also cheaper than the current BTC products like the Grayscale Bitcoin Trust. Another advantage is that the crypto economy will bring in a lot of new money into the market and will drive up the demand and as well Bitcoin’s price. Valkyrie will trade on NYSE Arca and will provide investors with an efficient means to implement various investment strategies.