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Valkyrie Launches VBB ETF to Allow Investors Gain Exposure to Bitcoin

On December 15, Valkyrie, an asset management firm, announced the launch of the Valkyrie Balance Sheet opportunities ETF (VBB), an    Exchange-Traded Fund (ETF  ) that aims to invest in innovative public companies that hold or invest in Bitcoin. While more than 80% of financial advisers know about cryptocurrencies, many still struggle to effectively allocate clients to this new asset class. The problem is that many advisers do not know how to tell customers to invest in crypto assets.

More than half of the US Bitcoin investors first got into Bitcoin this year. And, 59% of investors are interested in Bitcoin investments, which is a rise from only 36% just two years ago. Besides that, 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. Therefore, investing in such companies can offer a form of indirect exposure that many retail investors are seeking.

Valkyrie Balance Sheet Opportunities ETF provides a new avenue for investors to gain exposure to this rapidly evolving asset class. The investment product is an actively managed fund, which aims to invest majorly in firms that directly or indirectly have exposure to, invest in, or transact in Bitcoin on their balance sheet or companies that operate within the Bitcoin ecosystem. However, the fund does not invest directly in the cryptocurrency itself.

Leah Wald, the CEO at Valkyrie, talked about the development and said: “    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.”

The fund is the second in a group of ETFs intended to be provided by Valkyrie designed to enable investors to invest in the digital asset space. Valkyrie started trading its Bitcoin Futures exchange-traded fund (ETF) on the Nasdaq stock market in late October after the firm got approval from the US SEC. The approval of ProShares, Valkyrie, and VanEck’s Bitcoin futures ETFs marks the first time US investors can buy and trade ETF shares directly tied to Bitcoin.

Bitcoin Going Mainstream

The development by Valkyrie comes at a time when Bitcoin, the world’s largest cryptocurrency, is going mainstream. From fast food to sports and local Walmart stores to stock markets, the flagship cryptocurrency can be found everywhere. As an investment, the cryptocurrency is appealing to investors’ interest as its price has so far doubled in 2021 alone. Though several investors are betting on the asset class, many may not want to take the normal route of directly investing in the crypto.

The good news is that there are more ways that investors can gain exposure to the asset. While exchange-traded funds that track the prices of Bitcoin have been available for a while in nations like Canada and in Europe, it is a new thing in the US, as it was recently approved by regulators. In October, the first Bitcoin-related ETFs were allowed to trade on US stock markets. So, investors can gain exposure to Bitcoin by investing Bitcoin Futures ETFs, which track Bitcoin’s spot price indirectly through the use of contracts overseen by the CME (Chicago Mercantile Exchange).

Alternatively, investors can invest in publicly traded companies that hold substantial amounts of Bitcoin on their balance sheet. Tesla Inc has around $1.26 billion worth of Bitcoin on its balance sheet. Other public companies that have massive Bitcoin holdings on their balance sheet include MicroStrategy Inc., the software company, Galaxy Digital Holdings, the Block Inc., (formerly Square) and many others. Besides holding Bitcoin, these firms do other activities. Therefore, investors must evaluate the sector and product performance of individual companies. The stock performance of these firms is influenced by various factors, which individual firms deal with, not just the Bitcoin price. Investors can invest in multiple companies at once through several exchange-traded funds that hold stocks of companies involved in the Bitcoin ecosystem.

On December 15, Valkyrie, an asset management firm, announced the launch of the Valkyrie Balance Sheet opportunities ETF (VBB), an    Exchange-Traded Fund (ETF  ) that aims to invest in innovative public companies that hold or invest in Bitcoin. While more than 80% of financial advisers know about cryptocurrencies, many still struggle to effectively allocate clients to this new asset class. The problem is that many advisers do not know how to tell customers to invest in crypto assets.

More than half of the US Bitcoin investors first got into Bitcoin this year. And, 59% of investors are interested in Bitcoin investments, which is a rise from only 36% just two years ago. Besides that, 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. Therefore, investing in such companies can offer a form of indirect exposure that many retail investors are seeking.

Valkyrie Balance Sheet Opportunities ETF provides a new avenue for investors to gain exposure to this rapidly evolving asset class. The investment product is an actively managed fund, which aims to invest majorly in firms that directly or indirectly have exposure to, invest in, or transact in Bitcoin on their balance sheet or companies that operate within the Bitcoin ecosystem. However, the fund does not invest directly in the cryptocurrency itself.

Leah Wald, the CEO at Valkyrie, talked about the development and said: “    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.”

The fund is the second in a group of ETFs intended to be provided by Valkyrie designed to enable investors to invest in the digital asset space. Valkyrie started trading its Bitcoin Futures exchange-traded fund (ETF) on the Nasdaq stock market in late October after the firm got approval from the US SEC. The approval of ProShares, Valkyrie, and VanEck’s Bitcoin futures ETFs marks the first time US investors can buy and trade ETF shares directly tied to Bitcoin.

Bitcoin Going Mainstream

The development by Valkyrie comes at a time when Bitcoin, the world’s largest cryptocurrency, is going mainstream. From fast food to sports and local Walmart stores to stock markets, the flagship cryptocurrency can be found everywhere. As an investment, the cryptocurrency is appealing to investors’ interest as its price has so far doubled in 2021 alone. Though several investors are betting on the asset class, many may not want to take the normal route of directly investing in the crypto.

The good news is that there are more ways that investors can gain exposure to the asset. While exchange-traded funds that track the prices of Bitcoin have been available for a while in nations like Canada and in Europe, it is a new thing in the US, as it was recently approved by regulators. In October, the first Bitcoin-related ETFs were allowed to trade on US stock markets. So, investors can gain exposure to Bitcoin by investing Bitcoin Futures ETFs, which track Bitcoin’s spot price indirectly through the use of contracts overseen by the CME (Chicago Mercantile Exchange).

Alternatively, investors can invest in publicly traded companies that hold substantial amounts of Bitcoin on their balance sheet. Tesla Inc has around $1.26 billion worth of Bitcoin on its balance sheet. Other public companies that have massive Bitcoin holdings on their balance sheet include MicroStrategy Inc., the software company, Galaxy Digital Holdings, the Block Inc., (formerly Square) and many others. Besides holding Bitcoin, these firms do other activities. Therefore, investors must evaluate the sector and product performance of individual companies. The stock performance of these firms is influenced by various factors, which individual firms deal with, not just the Bitcoin price. Investors can invest in multiple companies at once through several exchange-traded funds that hold stocks of companies involved in the Bitcoin ecosystem.

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