On Tuesday, Valkyrie Funds LLC announced its plans to liquidate one of its exchange-traded funds ( EFTs), which invests in innovative public firms exposed to Bitcoin.
The digital assets manager announced that it would close down Valkyrie Balance Sheet Opportunities FUND by the end of this month, October 2022. The digital asset manager also said it would delist Valkyrie from Nasdaq, a platform from which Valkyrie has exchanged since December 2021.
According to Tuesday’s filing with the Securities and Exchange Commission, any investor with shares will get a cash compensation equivalent to the net asset value ( NAV) of their claims during liquidation.
Valkyrie referred to fund liquidation as the best approach, stating that the course of action was part of a continuing product review to ensure the firm effectively meets customer demands. The company affirmed this decision after thoroughly consulting its Board of Directors. The Board of Directors concluded that fund dissolution was the approach for everyone involved.
Low Interest in Valkyrie’s Second ETF
Customers such as MicroStrategy (MSTR) and Tesla (TSLA) never showed much interest in Valkyrie’s second ETF, which is slightly discouraging because Tesla and MicroStrategy are widely known for holding Bitcoin in their balance sheets. The fund manages net assets worth only about $570000 as of now.
Some of the VBB’s crypto-savvy stocks’ lineup performed poorly in the S&P 500. As a result, the platform shed more than 50% of its value against a 25% drop for the benchmark index.
Valkyrie’s investors may exchange shares up to the end of exchange day, October 28. The company said it would settle the expenses brought about by the liquidation, brokerage expenses, and expenses caused by cash distribution.
Valkyrie Balance Sheet Opportunities ETF sought to invest majorly in firms that transact in, invest in, or are exposed to the Bitcoin asset class on their balance sheets. Additionally, the company aimed to invest in companies operating in the Bitcoin ecosystem, which was Valkyrie’s plan as of Last December. The fund is Valkyrie’s second ETF designed to help investors participate in the digital asset landscape.
Bitcoin Investment Is Common in The US
The fund’s dissolution occurs when many investors are still interested in Bitcoin investments regardless of the market’s downturn. More than 80% of financial advisers in America receive several questions about cryptocurrencies. However, most financial advisers fail to allocate clients properly to this asset class.
Investing in companies that deal in the Bitcoin ecosystem gives indirect exposure that most people want to learn about cryptocurrency. Besides, many publicly traded firms in the US are holding Bitcoin, and more entities, organizations, and nations are entering the cryptocurrency ecosystem.
About Valkyrie Funds LLC
Valkyrie Funds is a unique alternative financial service company in the middle of traditional finance and the upcoming digital asset sector whose associates aim to provide research, asset management, and other services.
Valkyrie Funds is headquartered in Nashville and aims to offer exposure to the digital economy via traditional financial vehicles. The seasoned asset managers that have previously unveiled many ETFs lead Valkyrie Funds. The asset managers also trade Exchange Traded Products and funds, such as digital asset funds, with backgrounds across Guggenheim Partners.
