Valkyrie Funds to Liquidate Bitcoin-Focused Investment Vehicle

By akohad Oct13,2022


The leading crypto asset manager Valkyrie Funds, is all set to liquidate one of the exchange-traded funds (ETFs) it manages.

According to the official press release, the company plans to close its Valkyrie Balance Sheet Opportunities FUND (VBB), an investment product offering indirect exposure to BTC.

  • The soon-to-be-delisted fund, under the ticker VBB, was first launched in December 2021 and granted exposure to the securities of US companies with Bitcoin on their balance sheets.
  • The ETF does not invest in bitcoin directly or indirectly through the use of derivatives; rather, it tracks companies like crypto custodians, exchanges, and trading firms.
  • After the liquidation, the fund will be delisted from the Nasdaq Exchange.
  • Valkyrie said the decision was taken after thorough consultation with the Board of Directors and agreed that the best course of action for all involved will be discontinuing the fund.
  • The trading day will conclude on October 28th. Till then, shareholders may sell their shares.
  • The fund manager argued that the move to close this fund will not have any impact on potential brokerage fees due as a result of said transaction.
  • Shareholders still holding shares of the fund at liquidation will receive a cash redemption for the net asset value (NAV) of their shares.
  • The announcement also noted that, aside from brokerage expenses, Valkyrie will satisfy expenses with respect to the liquidation and potential distribution of cash proceeds.
  • Apart from VBB, Valkyrie still manages other funds, including Valkyrie Bitcoin Miners ETF (WGMI), which recently scored approval from the SEC for trading on Nasdaq.
  • Earlier this year, Valkyrie’s XBTO Bitcoin Futures Fund was given a green light by the regulatory agency.

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By akohad

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