In the latest series of Bitcoin ETFs, Valkyrie, a financial services firm has filed for spot Bitcoin ETF with the US SEC. The firm already offers Bitcoin Futures ETF and an ETF investing in Bitcoin mining companies.
Parties Involved in the ETF
- Valkyrie has chosen Coinbase(through Nasdaq) as its Security Sharing Agreement Partner which will help it comply with US SEC standards for such ETFs.
- The fund will be named as Valkyrie Bitcoin Fund (as Trust). It will operate as per the Trust Agreement between Delaware Trust Company and Valkyrie Digital Assets, LLC.
- Nasdaq entered into a SSA agreement with Coinbase effective from June 16, 2023. Nasdaq is also the exchange on which Bitcoin ETFs by Valkyrie will be traded.
- Coinbase Custody Trust Company, LLC, will be the custodians for the Bitcoins in the ETF.
- US Bancorp Fund Services will acts as the Transfer agent and the administrator of the Trust and will oversee its bookkeeping, accounting, and similar other operations.
Benchmark for the ETF
It will track CME CF Bitcoin Reference Rate – New York Variant for deriving Bitcoin prices on its NAV prices on its ETF.
History of Offerings
Valkyrie already offers two ETF linked to Bitcoin, a mining companies ETF and a futures ETF.
The mining ETF is named as The Valkyrie Bitcoin Miners ETF which trades on Nasdaq as WGMI since February 7, 2022. The ETF is actively managed and invests in publicly traded companies that mine Bitcoin.
The other ETF is a Bitcoin Futures ETF by the name Valkyrie Bitcoin Strategy ETF. It trades on Nasdaq as BTF since October 21, 2021. It primarily invests in Bitcoin Futures contracts.