Valkyrie to Liquidate Bitcoin Balance Sheet ETF following Low Customer Demand

Valkyrie Funds LLC is a US-based digital asset ETF provider. It announced Tuesday that it would liquidate one of its ETFs that invests in innovative public companies that have exposure to Bitcoin.

The manager of digital assets stated that it would close down the Valkyrie Balance Sheet Options FUND (Nasdaq; VBB) at end-of-this month, and then delist from Nasdaq. This fund had been traded since December 2021.

According to Tuesday’s filing with the Securities and Exchange Commission, any investor holding shares of the fund will receive a cash redemption equal the net asset value (NAV), of their claims.

Valkyrie deemed the fund’s dissolution the best option. She stated that this was part of an ongoing review to products to ensure that the company meets customer needs.

According to the firm, the decision was taken after consulting thoroughly with the company’s Board of Director. They decided that the best option for everyone involved was to close the fund.

Customers never showed much interest in Valkyrie’s second ETF has the largest positions. These are MicroStrategy and Tesla (TSLA), two firms that have Bitcoin on their balance sheets. The report states that the fund’s net assets are currently only $570,000.

Shareholders can trade shares until the closing of trading on October 28th. Valkyrie claimed it would pay expenses related to liquidation and the distribution of cash proceeds.

The Valkyrie Balance Sheet Options ETF, launched last December, aimed to invest in companies that either invest in, trade in, or have exposure in the Bitcoin asset class. This is the second Valkyrie ETF designed to help investors participate in the digital assets landscape.

This happens because many investors still have an interest in Bitcoin investments, despite the market downturn. Recent research shows that over 80% of US financial advisers have been asked about cryptocurrency. However, it is difficult for many to effectively allocate clients to this asset. These companies offer indirect exposure to Bitcoin that many people are looking for, with many US-listed companies holding it and many more entities, corporations and countries entering the market.

Source: Shutterstock

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