On Tuesday, October 11, Valkyrie Funds announced liquidation of one of its exchange traded funds under its management. The fund said to be closed is Valkyrie Balance Sheet Opportunities Fund (VBB). On top of that, the ETF is also set to get delisted from the platform of Nasdaq Exchange.
The firm said the action of closing down the fund came in the wake of product review going on within the company intended to ensure meeting the best demands of client.
Valkyrie Funds noted the action followed the rigorous consultation with the Board of Directors within the firm. It added that after the discussion, the conclusion came out that ending upn the fund would be the best decision for all.
For shareholders, the company said that they can sell their shares till October 28th, 2022 as it is considered as the last trading day. This decision of shutting down the fund will not make an impact on the fees charged as brokerage fees given the outcome of the transaction.
The decision of closing down the ETF from the crypto asset manager took place given the investment vehicle went on decline. The decision of directly closing it down could also be considered the best possible way since the fund sputtered within less than a year of its activity.
According to the company, the fund is set to get liquidated by the end of this month. The delisting from Nasdaq of the fund is also set to take place during the same time, where it has been trading since December last year.
Companies like Tesla and MicroStrategy hold a good position within the exchange traded funds space. Citing the circumstances with the Valkyrie’s investment vehicle, it seems like investors did not take much interest in it.
When it comes to ETFs, they rarely get approval from the United States Securities and Exchange Commission. Although this is not the case with future ETFs anymore as the agency started to approve Bitcoin futures since last year. Companies like Valkyrie, ProShares and VanEck are the prominent examples of the same.
However, the crypto spot ETFs are the one which still found to face struggles to get approval of the SEC. The commission is so strict about the ETF that it had not approved any of it till date, despite a notable number of approvals. This draws significant criticism for the agency from various regulators and lawmakers along with industry leaders and institutions.
One such institution is Grayscale Investments which filed for a spot bitcoin ETF. However, in June month, the SEC went on to reject the Grayscale Bitcoin Trust (GBTC) spot bitcoin ETF request.
On June 29th, 2022, Grayscale went on to file a lawsuit against the SEC for its decision of rejecting the ETF application.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
Source: https://www.thecoinrepublic.com/2022/10/12/valkyrie-investments-announces-liquidation-of-bitcoin-etf/