Valkyrie’s Bitcoin Mining ETF to be Rolled Out on Nasdaq

With Bitcoin prices picking up pace a new Bitcoin mining backed ETF is set for listing on February 8. As per reports, the Valkyrie Bitcoin Miners ETF received approval for listing on the Nasdaq exchange, according to a Monday filing with the Securities and Exchange Commission (SEC).

Another Bitcoin ETF

Valkyrie Investment filed a post-effective amendment for the Valkyrie Bitcoin Miners ETF on January 26, after which the firm sought immediate acceleration of its effective date. For now, the Bitcoin Miners ETF will begin trading on the Nasdaq on Tuesday under the ticker WGMI. 

According to a January filing with the SEC, the investment vehicle will not offer direct exposure to Bitcoin (BTC), but at least 80% of its net assets will be through securities of companies that ‘derive at least 50% of their revenue or profits’ from BTC mining or providing the hardware or software related to mining. Furthermore, the filing added that Valkyrie would invest up to 20% of the ETF’s net assets in companies holding ‘a significant portion of their net assets’ in Bitcoin.

Reportedly, Nasdaq joined the request in the late hours of Monday since the exchange approved the fund to list. On the same, the Valkyrie CEO Leah Wald was reported as saying that ‘an increased focus and desire to gain exposure to Bitcoin miners from investors’ prompted the company to apply to the SEC to offer the exchange-traded fund. 

Another BTC Bull Run?

Soon after the ProShares Bitcoin Strategy ETF (BITO) in the New York Stock Exchange, Valkyrie became the second asset manager to offer a Bitcoin Futures ETF in US markets in October 2021. At that time the approval of a future BTC ETF gave a decent push to Bitcoin spot prices triggering a BTC bull run. 

After the launch, BITO finished in the top 15 ETF launches of all time after trading $250 million worth of shares in its first 15 minutes, while on the second day it became the fastest ETF ever to hit $1 billion in assets.

Over the last year, various Bitcoin futures ETFs have been approved and the high market interest in the ETFs are indicative of rising institutional interest in the asset. That said, the same also strengthens BTC’s long-term narrative as an investment instrument. 

As for Bitcoin’s spot price, BTC was up over 15.61% in the last week trading at $44,319 at press time. Bitcoin’s renewed uptrend sparked considerable retail interest too as trade volumes noted a decent uptick. Furthermore, on the back of the BTC gains the global crypto market cap was once again above $2 trillion noting, a 6.43% increase over the last day.