Valkyrie Funds to liquidate Bitcoin-related ETF by late October

Published at: Oct. 12, 2022

Valkyrie Funds, a major cryptocurrency fund manager in the United States, will soon be liquidating one of its Bitcoin (BTC)-related exchange-traded funds (ETFs).

The firm announced on Oct. 11 plans to close the Valkyrie Balance Sheet Opportunities ETF, a crypto investment product offering indirect exposure to BTC.

The fund will be delisted from the Nasdaq Exchange as Valkyrie plans to liquidate the ETF on Oct. 31, 2022.

According to the announcement, Shareholders will be able to sell shares up until the end of the trading day on Oct. 28, 2022. Any investors still holding the fund shares at liquidation will receive a cash distribution equal to the net asset value of their shares, the announcement notes.

The firm also said that it will satisfy expenses related to the liquidation and potential distribution of cash proceeds, aside from brokerage expenses.

Valkyrie noted that the decision to liquidate the fund has been taken as part of an ongoing review of products as the firm aims to “best meet client demand,” stating:

“This action was taken after thorough consultation with the Firm's Board of Directors and comes after it was determined that discontinuing the fund was the best course of action for all involved.”

Valkyrie Funds is one of the major companies in the U.S. issuing cryptocurrency ETFs. The company is known for launching one of the first Bitcoin futures ETFs in the U.S. in October last year following approval from the U.S. Securities and Exchange Commission. The ETF product is called the Valkyrie Bitcoin Strategy ETF (BTF).

The soon-to-be-delisted Valkyrie Balance Sheet Opportunities was launched in December 2021, offering exposure to securities of U.S. companies with Bitcoin on their balance sheets. Listed under the ticker VBB, the ETF tracks companies like crypto custodians, exchanges and trading firms.

Related: SEC rejects WisdomTree’s application for a spot Bitcoin ETF... again

Despite delisting VBB, Valkyrie still continues to manage funds, including the BTF and the Valkyrie Bitcoin Miners ETF (WGMI). The latter was launched in February 2022, with 80% of assets tracking securities of companies that derive their revenue or profits from BTC mining.

The firm did not immediately respond to Cointelegraph’s request for comment. This article will be updated pending new information.

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