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Valkyrie Crypto Trusts Gather Nearly $74 Million In Funding Amid Bear Market

An alternative investment company, Valkyrie, has added $73.6 million in capital into two crypto-focused trust funds. Valkyrie initially had $1.2 billion in assets under management at the end of the second quarter. This information is in amended filings with the United States Securities and Exchange Commission (SEC).

Over the years, crypto investments and Decentralized finance have proven to be a great alternative to the traditional finance system. It could be because DeFi has a way to boycott the bureaucracy in the financial system.

Decentralized Finance (DeFi) allows the use of digital ledger technologies. Digital technology enables investors to access and control their assets and financial data in global financial transactions.

With DeFi, developers have created financial instruments that can operate digital assets without limitations. Loan collateral and debt obligations can all be tokenized with Decentralized Finance.

Since blockchain technologies are transparent and accessible, many investors now channel their finance into the Crypto industry. As a result, traditional finance keeps flowing into the crypto industry, even with the bear market.

Details Of The Valkyrie Tron Trust

According to reports, the oldest fund was launched in 2021. The Valkyrie Tron Trust offers eligible investors access to the TRX cryptocurrency. According to the SEC filings, the trust has raised $50 million from a small sum of $57 in sales in July 2021.

Tron is a blockchain-based decentralized digital platform with its cryptocurrency known as TRX. It aims to host entertainment applications and enable content creators to sell their work directly to consumers.

Tron has been increasingly gaining recognition in the crypto market recently. A spokesman of Valkyrie noted that Investors are taking note of the continuous transaction growth recorded recently by the Tron network.

Valkyrie Avalanche Trust Increased AVAX Exposure

Meanwhile, the Valkyrie Avalanche Trust is bringing exposure to the AVAX token. The trust appeared in an SEC filing in January, but no sale has been recorded. The trust has raised $24 million out of the $25 million target mentioned by Valkyrie in May.

Valkyrie’s Spokesperson commented that the Avalanche adoption rate is increasing significantly. He referred to KKR’s deal with Securitize for tokenization of a private equity fund on Avalanche blockchain announced earlier this week.

A Brief On Valkyrie

Valkyrie is a Tennessee-based investment company. The company offers trust funds based on eight protocols, three Nasdaq-listed exchange-traded funds (ETFs), Decentralized finance (DeFi), and protocol treasury business management.

The SEC approved Valkyries’ XBTO Bitcoin Futures Fund in May. The crypto investment firm announced plans to enter into venture capital with a $30 million fund two months after the approval.

Bitcoin bulls are trying to push above $20,000 l BTCUSDT on Tradingview.com

The fund’s targets are new start-up companies in Israel. Valkyrie’s customer base is mainly from the U.S, and this may help assist the Israeli teams.

Valkyrie also closed a deal of an $11 million strategic funding round in July. Top traditional finance companies BNY Mellon and Wedbush are backing the fund.

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Valkyrie Bitcoin Mining ETF “WGMI” Approved For Nasdaq Listing

Crypto asset management firm Valkyrie will have a new exchange-traded fund (ETF) listed on the Nasdaq this week. The stock exchange will be listing Valkyrie’s new ‘Bitcoin Mining ETF,’ an investment vehicle that will supply assets that provide exposure to company securities “deriving at least 50% of their revenue or profits” from Bitcoin or crypto mining, or hardware and software related to crypto mining.

Valkyrie… Going To Make It?

Spot Bitcoin and crypto ETFs are yet to hit the market in the U.S., hampered by the SEC’s timid approach on accepting such ETFs. However, in recent months, the SEC has finally become warm to the idea of future’s ETFs, starting with the ProShares ETF and VanEck Bitcoin ETF. Last October was indeed a monumental month for publicly-traded markets and crypto, with Valkyrie joining the likes of ProShares, Invesco, and several other investment firms that sought out crypto-focused ETF offerings.

Valkyrie’s latest ETF, ‘WGMI’ (an homage to famed crypto phrase, “we’re gonna make it”), will start trading at the opening bell for the Nasdaq beginning tomorrow, Tuesday February 8th. Valkyrie has established that 80% of portfolio holdings in the ETF will reflect securities of firms that are generating a majority of their revenue or profit from crypto mining, or from hardware and/or software related to crypto mining. The remaining 20% of the ETF’s net assets will be allocated towards firms that hold “a significant portion of their net assets” in Bitcoin and crypto. The ETF will carry a 0.75% expense ratio.

Related Reading | Bitcoin On Track To $50K, Why BTC Whales May Blaze The Trail

Bitcoin has been showing strong signs of righting the ship after a tough start to the new year. Will Valkyrie’s latest ETF, and other publicly-traded securities help bolster adoption? | Source: BTC-USD on TradingView.com
What We Can Expect

WGMI is the third in line for Valkyrie’s now-accepted ETFs, following behind the firm’s broad Bitcoin futures ETF and “Balance Sheet Opportunities ETF,” which holds firms that “directly or indirectly invest in, transact in, or otherwise have exposure to bitcoin.”

While we know that this new Valkyrie ETF won’t possess direct crypto holdings, expect some of the biggest mining names to make the cut, such as Hive, Bitfarms, Marathon and more. With the 20% allocated towards firms with substantial net assets in Bitcoin, we could also see the likes of MicroStrategy and other major players make the WGMI holdings. Additionally, the fund has noted that the firm’s holdings use about 77% renewable energy, double the average of common publicly-traded companies.

Related Reading | The Bear Signal That Suggests Another Bitcoin Crash Is Coming

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The writer of this content is not associated or affiliated with any of the parties mentioned in this article. This is not financial advice.