Crypto investment firm, Valkyrie Digital Assets has filed for a new exchange-traded fund (ETF) that owns Bitcoin on their balance sheet. On March 12, the firm submitted its filing to the Securities and Exchange Commission (SEC) for the Valkyrie Innovative Balance Sheet ETF. Valkyrie Innovative Balance Sheet ETF An exchange-traded fund (ETF) is an investment product that includes stocks, bonds, or commodities traded on an exchange like shares of a company. ETFs can be traded throughout the day, making them alluring to traditional investors. Valkyrie’s proposed ETF will comprise of its capital into companies that directly or indirectly invest in, transact in, or otherwise have exposure to Bitcoin or operate in the Bitcoin ecosystem. Valkyrie defined the Bitcoin ecosystem as the Bitcoin network that includes of: “bitcoin trading platforms, bitcoin miners, bitcoin custodians, digital wallet providers, companies that facilitate payments in bitcoin and companies that provide other technology, equipment or services to companies operating in the Bitcoin ecosystem.” Valkyrie Digital Assets filed the ETF in partnership with KKM Financial that would act as the investment advisor to the fund. Meanwhile, institutional asset manager SEI will act as the distributor of the fund. The filing read: “The Fund will invest principally in the securities of operating companies that have innovative balance sheets. Operating companies that directly or indirectly invest in, transact in, or otherwise have exposure to bitcoin or operate in the bitcoin ecosystem. ” Corporate Players Adding BTC to Balance Sheet The move to add Bitcoin to a company’s balance sheet gained popularity as MicroStrategy continued to make large purchases of the leading cryptocurrency. Soon after, electric car manufacturing company Tesla too followed the same suit by adding Bitcoin to its balance sheet. Valkyrie Digital Assets plans to issue the shares on the NYSE Arca exchange. In January, Valkyrie also lodged a Bitcoin ETF prospectus with the SEC.
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