Valkyrie Files With SEC for Balance Sheet Fund
2 min read
Valkyrie Funds filed with the Securities and Exchange Commission on Mar. 12 for an exchange traded fund focused on corporations with BTC exposure.
The fund, called Valkyrie Innovative Balance Sheet ETF, will concentrate on the “securities of operating companies … that directly or indirectly invest in, transact in or otherwise have exposure to BTC or operate in the BTC ecosystem”.
With this ETF, Valkyrie will be able to invest into companies working directly in the BTC environment, such as exchanges or miners. Moreover, it will also be able to invest into corporations exposed to BTC on their balance sheets such as MicroStrategy.
Valkyrie BTC ETF
The Valkyrie Innovative Balance Sheet ETF is the second BTC-related SEC filing from Valkyrie in 2021. On Jan. 22, the company filed for its Valkyrie BTC ETF, which will let the company gain exposure to BTC directly for the fund’s investors.
Currently, there are no BTC exchange traded funds in the United States. This is not due to a lack of trying. Valkyrie and Gemini Trust are only two of the best-known examples of companies that have filed for them.
MicroStrategy Proxy
American companies wanting to gain exposure to BTC are looking to MircoStrategy for workarounds. For example, Valkyrie’s Innovative Balance Sheet ETF will most likely invest in MicroStrategy. This company has over 90,000 BTC on its corporate balance sheet.
The BTC holding has turned MicroStrategy’s stock into a proxy for a BTC ETF. Observers have noticed that stock price now closely mirrors BTC’s price.
Moreover, MicroStrategy shared its playbook for replacing cash in its corporate treasury with BTC. The company held a two day online conference on the topic. The conference was so popular that representatives from 6917 companies attended.
Catching up
By allowing an actual BTC ETF, the SEC would allow U.S. investment firms to catch up with their Canadian counterparts. On Feb. 11, Canadian regulators approved the first North American BTC ETF. Purpose BTC Fund launched on the Toronto exchange shortly afterward. The fund saw over $400 million pour into it within two days.
Until the SEC starts approving BTC-oriented ETFs, American investors will have to take what they can get. Gemini Trust is the custodian for Purpose BTC Fund’s non-Canadian investors. In the meantime, Valkyrie and company will need to keep banging on the door of the Securities and Exchange Commission for permission to keep up with the neighbors.
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