Valkyrie has received approval from the SEC to list its Bitcoin Miners ETF. This is not a spot or futures Bitcoin ETF. The underlying asset of this product is the shares of some of the leading publicly traded Bitcoin mining farms.
The Bitcoin Miners ETF by Valkyrie
The newly SEC-approved Valkyrie ETF is expected to debut as early as today on the Nasdaq. The ticker will be WGMI, an acronym that stands for We’re Gonna Make It.
As mentioned, it’s not one of the long-awaited spot Bitcoin-based ETFs, nor is it yet another Futures-based one. In the basket of this exchange traded fund are some of the most important companies dedicated to Bitcoin mining, specifically, companies that use for 77% of their production renewable energy.
In the product description, investors are warned that although this ETF is not directly exposed to Bitcoin, the stocks it contains, in a sense, are. In fact, among them are shares of Argo Blockchain and Biftarms. According to the prospectus, a downward trend in the price of Bitcoin, as well as any denials of its adoption, could also pose a risk to investing in this ETF.
This is by no means Valkyrie’s first ETF, which also has the Bitcoin Strategy ETF that instead relies on Bitcoin Futures.
Whereas the Balance Sheet Opportunities ETF is exposed to companies that in turn have exposure to Bitcoin on their balance sheets.
By contrast, another ETF that was instead based on leveraged Bitcoin was not approved by the SEC. The SEC evidently considered this type of investment too risky.
Leah Wald, CEO of Valkyrie, explained to Bloomberg that many investors were looking for the opportunity to invest in companies that were focused on the sustainable production of Bitcoin. This interest was seen as a positive movement in the market.
Anticipation for Bitcoin spot ETFs
Valkyrie is also dreaming of seeing spot Bitcoin-based ETFs approved. In this regard, CEO Leah Wald says she is confident that they will come in the future. But in the meantime, Valkyrie is working on other products in the ETF space, such as indeed Bitcoin Miners which will debut today on the Nasdaq
The CEO said:
“We are not holding our breath still. Fortunately we do actually have a thirty three bitcoin futures filing in as well. So we are looking at other opportunities to work with the market in the interim whether it’s through the thematics you know bitcoin miners or more bitcoin adjacent ETF. But for spot I think the Holy Grail is still a little bit in the future but we’re keeping a pulse”.