Valkyrie, a digital asset management company has filed an application with the US SEC for an ETF or exchange traded fund. Almost 80% net asset of this fund will be used to fund companies that receive 50% of revenue from bitcoin mining.
ETF for Companies Mining Bitcoin
Valkyrie is already known in the crypto industry after it had launched futures ETF for bitcoin with “BTF” ticker. The report came after the first ETF related to bitcoin was launched by Proshares. As per the record filed with the US SEC on Jan 26, Valkyrie plans to launch an ETF that will leverage firms deriving their revenue from bitcoin mining firms. It wants to list its ETF offer on NASDAQ, the marketplace where BTF, bitcoin exchange traded futures fund trades.
Explaining How the Investments Will Be Made
According to the company filing, the fund will be managed actively. It has plans to invest a minimum of 80% of its earnings plus borrowed money from investors, in the securities of firms that get 50% revenue from bitcoin currency mining operation. It will also invest in companies that provide hardware, software, chips and other products and services to firms involved in bitcoin mining operations.
The profitability of cryptocurrency mining has increased in the last year. The hash rate of bitcoin remains over 180 exahash/second. At the current exchange rate of BTC, the bitcoin miners delivering 100 TH/s or higher are receiving $14/day. The electricity cost of this process comes out to $0.12/kWh.