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Valkyrie ETF targets Bitcoin exposure through ecosystem

By Kevin Donovan

15:06, 16 December 2021

Valkyrie Balance Sheet Opportunities ETF logo
VBB is an actively managed ETF available through Nasdaq that invests in innovative public companies with exposure to bitcoin – Photo: Valkyrie Funds

Valkyrie Funds launched a new exchange-traded fund (ETF) that invests in companies with what it calls “innovative balance sheets” that have either direct or indirect Bitcoin exposure.

“The goal of this actively managed fund is to invest primarily in companies that directly or indirectly invest in, transact in, or have exposure to the bitcoin asset class on their balance sheets, or those that operate within the bitcoin ecosystem,” Valkyrie said in a prepared statement. “The fund does not invest directly in bitcoin.”

Valkyrie Balance Sheet Opportunities ETF opened Thursday at $25.98 per share, up 2% but moved lower.

The fund was initially priced at $25 and began trading Wednesday at $24.86 per share and closed the session at $25.47, up 2.5%, on 4,800 trades, according to data maintained by Yahoo! Finance. Valkyrie Balance Sheet Opportunities ETF trades over the Nasdaq exchange under the ticker “VBB”.

Fund allocation targets

Valkyrie Balance Sheet Opportunities ETF will invest at least 80% of its net assets in companies currently engaged in investing, trading or otherwise have Bitcoin exposure, including custodians, exchanges and traders, Valkyrie said.


118.07 Price
-3.200% 1D Chg, %
Long position overnight fee -0.0263%
Short position overnight fee 0.0041%
Overnight fee time 21:00 (UTC)
Spread 0.12


257.16 Price
+9.200% 1D Chg, %
Long position overnight fee -0.0263%
Short position overnight fee 0.0041%
Overnight fee time 21:00 (UTC)
Spread 0.46


239.35 Price
-4.410% 1D Chg, %
Long position overnight fee -0.0263%
Short position overnight fee 0.0041%
Overnight fee time 21:00 (UTC)
Spread 0.20


25.04 Price
-4.410% 1D Chg, %
Long position overnight fee -0.0263%
Short position overnight fee 0.0041%
Overnight fee time 21:00 (UTC)
Spread 0.13
VBB holdingsVBB Holdings – Credit: Valkyrie Funds

The other 20% will be invested in companies operating within the bitcoin ecosystem, such as digital wallet providers, miners and companies providing equipment or services to companies operating in the Bitcoin ecosystem. This includes companies that may not be directly and actively involved in Bitcoin but accept Bitcoin as payment or offer Bitcoin payment services.

“Bitcoin and digital assets are seeing increasing interest from all corners of the globe," said Valkyrie CEO Leah Wald in the same statement. "The companies with exposure to Bitcoin read the tea leaves and have decided to take action in an attempt to preserve their value, but also as another means to potentially generate more returns for shareholders in the decades to come.”

The more specific target breakdown of the ETFs allocation goals outlined in the prospectus filed with the US Securities & Exchange Commission includes 10% of the fund will target bitcoin miners and 5% in pooled investments holding Bitcoin. A 20% target is aimed at companies Valkyrie believes will meet the objective criteria within three years.

Up to 15% of the fund will be invested in either convertible notes or proffered stock of targeted companies and 10% allocated to non-US investments, including those in emerging markets.

Read more: Race for first US bitcoin ETF heats-up

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The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
Capital Com is an execution-only service provider. The material provided in this article is for information purposes only and should not be understood as investment advice. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents and has not been prepared in accordance with the legal requirements designed to promote investment research independence. While the information in this communication, or on which this communication is based, has been obtained from sources that believes to be reliable and accurate, it has not undergone independent verification. No representation or warranty, whether expressed or implied, is made as to the accuracy or completeness of any information obtained from third parties. If you rely on the information on this page, then you do so entirely at your own risk.

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