The new product is Valkyrie Bitcoin Miners ETF and will be known under the acronym WGMI. Investors will have exposure to companies that are actively involved in the mining sector BTC.
Recently published reports indicate that the stock exchange traded fund (ETFs) from Valkyrie based on mining Bitcoin will start working through NASDAQ starting tomorrow.
New ETFs valkyrie based on mining Bitcoin
Known under the acronym WGMI, this would be the third ETFs presented by Valkyrie to trade through the US markets. This product was introduced under the name Valkyrie Bitcoin Miners ETF and on January 26, an amendment was presented to readjust certain aspects originally proposed. Subsequently, the responsible entity requested to accelerate its launch as soon as possible and it will finally see the light tomorrow, February 8.
As such, this new ETF from Valkyrie will be directly associated with the mining of Bitcoin, therefore, it will invest in public companies that operate within said sector. It is worth noting that this product does not imply the possession of bitcoin, but it will allow investors to have exposure to companies such as Argo, Bitfarms, Hive and Marathonamong others, which very possibly manage the cryptocurrency within its balance.
It is worth noting that already Valkyrie has two other ETFs focused on digital assets. The first was approved in October of last year and is a fund based on Bitcoin futures, while the other is related to companies that invest in BTC and are listed on the stock market.
As many know, the mining of Bitcoin has been the subject of criticism and criticism in recent years, especially for the carbon footprint generated by transactions through the network and the use of non-renewable energies that generate a strong environmental impact.
In attention to this aspect, the ETFs mining Bitcoin proposed by Valkyrie will allocate 80% of its assets to companies that use at least 50% renewable energy to support their operations. This is intended to encourage participants to align with the standards that most companies that carry out this practice are adopting.
Despite the fact that this constitutes a good approach to bring traditional investors to the digital currency, the long-awaited wait for the first ETFs fully based on Bitcoin, product with which US Securities and Exchange Commission (SEC) has had a particular problem, since it has rejected several applications due to concerns about possible manipulation and price volatility.
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Angel Di Matteo version / DailyBitcoin
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WARNING: This is an informative article. DiarioBitcoin is a means of communication, it does not promote, endorse or recommend any investment in particular. It is worth noting that investments in crypto assets are not regulated in some countries. May not be suitable for retail investors as the full amount invested could be lost. Check the laws of your country before investing.