Valkyrie Bitcoin Mining ETF has been approved by the SEC for listing on NASDAQ. The ETF is yet another step forward towards better adoption of Bitcoin. This new mining ETF will provide investors exposure to company securities with at least 50% or more of the profits coming from Bitcoin/crypto mining. So, this basically means it is an ETF for investing in crypto mining companies.
More about the Valkyrie ETF
Currently, we have only future ETFs in the market right now because spot ETFs haven’t been approved by the SEC yet. But they did approve the BTC mining ETF. It will start trading on February 8th as NASDAQ opens. The ETF has around 80% exposure of companies that generate the majority of their revenue from mining. And the rest will go towards companies that have a significant crypto holding in their balance sheet. The expense ratio of the ETF is 0.75% which means for every $100, Valkyrie will keep 75 cents.
So, investing in this ETF will mean investing in the already listed mining companies on NASDAQ. It is a good investment for those who want to invest in crypto but not directly. The benefits of investing in an ETF are also many. Since it is a regulated asset, there will be tax benefits, no hassle of using multiple exchanges, and more security.
Other than this, Valkyrie also has two other ETFs. One of them is the Broad Futures ETF and the balance sheer opportunities ETF. As you can understand by the name first is a future ETF, and the second is for those companies that have crypto on their balance sheet.
Spot ETF?
While we have many crypto ETFs in the market right now, the one everyone is waiting for is a SPOT ETF. The SEC has rejected and postponed applications of the same multiple times, but the last date is now March 15th. Before or on that date, the SEC has to either approve or reject all the ETF applications that are due. So, we can finally get a solid overview of the topic. I personally think a Spot ETF will be approved this year or by mid-2023.
What are your thoughts as the SEC approves the Valkyrie Bitcoin Mining ETF? And do you think that a spot ETF will be approved soon? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.
Also Read: KPMG Canada adds Bitcoin and Ethereum to balance sheet.
