Valkyrie Investments applied for a new Bitcoin Mining-Focused ETF with the SEC

Crypto asset manager Valkyrie Investments applied with the SEC to list a Bitcoin mining-focused exchange-traded fund (ETF) on the Nasdaq. The fund will invest at least 80% of its assets into firms that derive at least 50% of their revenue from Bitcoin mining.

Valkyrie applies for Bitcoin mining-focused ETF

According to a Wednesday filing with the SEC, Valkyrie’s proposed ETF will invest at least 80% of its net worth in stocks of companies that derive most of their revenue from Bitcoin mining-related activities, including the production of specialized mining chips, hardware, and software.

Considering the SEC’s refusal to approve applications for physical or spot Bitcoin ETFs, asset managers, and investment firms have turned to products that provide indirect exposure to the cryptocurrency markets, including Bitcoin futures ETFs, crypto company stocks, or ETFs that invest in them.

The Valkyrie Bitcoin Miners ETF will invest neither directly nor indirectly in Bitcoin, related derivatives, investment funds, or asset-holding trusts. Instead, if the SEC approves, the fund will be an actively managed exchange-traded vehicle that focuses on buying shares of Bitcoin miners or crypto-mining equipment manufacturers. ETF will charge a 0.75% annual management fee.

Valkyrie’s new ETF will provide investors with diverse, direct exposure to the Bitcoin mining industry if the SEC approves the fund. Valkyrie will also consider environmental, social, and governance (ESG) criteria in selecting securities for the fund’s portfolio. Specifically, the company plans to allocate at least 80% of the fund’s net assets to companies that use at least 50% renewable or clean energy for their mining operations.

This is not Valkyrie’s first crypto-related ETF. Last October, the crypto asset manager became the third company to launch a Bitcoin futures ETF, after ProShares and VanEck. A month later, Valkyrie also launched a $100 million DeFi hedge fund, exposing investors to more than 24 cryptocurrencies on more than 13 blockchains.

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