Exchange-traded funds (ETFs) will have played a significant role in the crypto story by 2021. After the initial ProShares Bitcoin ETF was launched on October 20th, Bitcoin and the broader crypto industry began to rally.
Three days later, the Valkyrie Bitcoin Strategy ETF debuted, and Bitcoin reached an all-time high of $68.7k. Valkyrie has launched a second Bitcoin ETF, less than two months after its first ETF was approved.
Valkyrie announced the launch of a second Bitcoin ETF, the Valkyrie Balance Sheet Opportunities ETF, on Wednesday, December 15th (VBB).
The ETF will expose investors to publicly traded companies that invest in, transact in, or hold Bitcoin directly or indirectly. Among the most popular companies in this category are MicroStrategy, Block (formerly Square), Tesla, Coinbase, and PayPal.
Valkyrie’s second Bitcoin ETF will provide investors with indirect exposure to Bitcoin. As part of the agreement, the fund may invest up to 10% of its net assets in Bitcoin mining firm securities and 5% in pooled investment vehicles in the United States that hold BTC.
Steven McClurg, the co-founder of Valkyrie Funds, explained that the fund will limit its exposure to mining companies. According to McClurg, the move will help to mitigate the risk of firms dealing directly in the Bitcoin ecosystem.
VBB shares are trading at $24.47 at the time of writing, down more than 1.5 percent since their initial public offering on December 15th.