Bitcoin ETF to be Liquidated by Valkyrie Funds  

• Valkyrie to liquidate one of its Bitcoin ETF soon.
• About Valkyrie Balance Sheet opportunities ETF.
• Struggling to get approval from regulatory body SEC. 

The Firm’s Declaration 

On 11 october, the Valkyrie Funds announced that they will be liquidating its one of the Bitcoin ETF till the end of October. The fund was initially listed in 2021 on Nasdaq with an aim to “innovative public companies with exposure to bitcoin”.

A crypto investment product which offered indirect exposure to BTC laid by Valkyrie Fund known as Valkyrie Balance Sheet Opportunities ETF (VBB).It is stated that the fund will be delisted from the Nasdaq Stock Exchange till 31 October,2022. 

Valkyrie Funds is a prominent financial services firm. It is a major cryptocurrency fund manager in the United States crypto ETFs. Valkyrie still continues to manage funds, consisting of BTF and the Valkyrie Bitcoin Miners ETF (WGMI). 

The company is remembered to mark the history in order to present the first ever Bitcoin futures ETFs in the United States at the same time last year granted approval  from the Securities and Exchange Commission. The ETF product was named as the Valkyrie Bitcoin Strategy ETF (BTF).

It was decided back in February of 2022,Bitcoin ETFs 80% of its total net assets will be invested in the securities of U.S. operating companies that have innovative balance sheets, Vident Investment Advisory,etc. 

The firm stated that they got to the decision of shutting down the fund due an ongoing review of the product to meet the best demand of clients. Companies like Tesla and Microstrategy hold a good power with the Bitcoin ETF space. But seeing such circumstances, the investors are not much interested now. 

Conclusion

Valkyrie Funds had a rigorous consultation with its Board of Directors within the firm. “This action was taken after thorough consultation with the Firm’s Board of Directors and came after it was determined that discontinuing the fund was the best course of action for all involved.”

According to the Coin Republic, the company authorities stated that the shareholders can sell their shares till October 28th, 2022 as it is considered the last trading day. Also, the crypto spot ETFs are among the ones which currently struggle to get approval from the Securities and Exchange Commission. 

Although this is not similar as in the case of future ETFs, the governing body started to provide immediate approvals to Bitcoin futures since last year. Companies like Valkyrie, ProShares and VanEck are the most famous examples of the following. 

One among those is Grayscale Investments which filed a spot Bitcoin ETF. But, in the month of June, the SEC refused to approve the Grayscale Bitcoin Trust (GBTC) spot bitcoin ETF grant. As a result, on 29th June, 2022, Grayscale filed a lawsuit against the SEC for its unfair decision of rejecting the bitcoin ETF approval. 

Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.

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