Valkyrie Launches VBB ETF to Promote Bitcoin investments

Valkyrie, an asset management firm, announced on Thirsday that it has launched the Valkyrie Balance Sheet opportunities ETF (VBB), an Exchange-Traded Fund (ETF) with the goal of investing in innovative public companies that hold or invest in Bitcoin.

This year, more than half of the US Bitcoin investors made their initial investment in Bitcoin. And, compared to just 36% of investors who are interested in Bitcoin investments two years ago, the proportion has increased to 59%. In addition, investing in such companies can offer a form of indirect exposure that many retail investors are seeking since many publicly traded companies in the US already hold Bitcoin in their treasury reserves, and more nations, corporations and other entities are entering the space each day.

However, there is a problem that while more than 80% of financial advisers know about cryptocurrencies, many advisers do not know how to tell customers to invest in crypto assets, so they still struggle to effectively allocate clients to this new asset class. 

The Valkyrie Balance Sheet Opportunities ETF offers investors a new way to participate in this rapidly changing asset class. The product is an actively managed fund with the goal of investing primarily in companies that have direct or indirect exposure to, invest in, or transact in Bitcoin on their balance sheet, as well as companies that operate within the Bitcoin ecosystem. The fund, on the other hand, does not invest directly in the cryptocurrency itself.

Leah Wald, the CEO at Valkyrie, commented on the development: "Bitcoin and digital assets are seeing increasing interest from all corners of the globe. The companies with exposure to bitcoin read the tea leaves and have decided to take action in an attempt to preserve their value but also as another means to potentially generate more returns for shareholders in the decades to come."

​Fazzoco has learned that the VBB is the second in a group of ETFs intended to be provided by Valkyrie to enable investors to invest in the digital asset space. Earliear in late October, after receiving approval from the US Securities and Exchange Commission, Valkyrie began trading its Bitcoin Futures exchange-traded fund (ETF) on the Nasdaq stock exchange. With the approval of ProShares, Valkyrie, and VanEck's Bitcoin futures ETFs, it is the first time for US investors to be able to buy and trade ETF shares directly linked to Bitcoin.