- Valkyrie’s bitcoin miners ETF will start trading on the Nasdaq on Tuesday, the crypto asset manager said.
- At least 80% of the ETF’s assets will be companies with at least half their profits or revenue from bitcoin mining.
- The fund, whose top 5 holdings include Argo Blockchain, will trade under the ticker WGMI.
Valkyrie’s bitcoin miners exchange-traded fund will start trading on Tuesday, the crypto asset manager has told Insider.
The Bitcoin Miners ETF will trade under the ticker WGMI on the Nasdaq, after getting approval from the exchange for its listing on Monday.
The ETF will invest at least 80% of its net assets in companies that get at least half of their revenue or profits from bitcoin mining operations, or from supplying specialized hardware or services to bitcoin miners, Valkyrie said in a January 26 filing to the Securities and Exchange Commission.
It will also look at companies that hold a significant amount of bitcoin or that transact in the leading cryptocurrency for up to 20% of the rest of its investment.
With the SEC reluctant to approve a spot bitcoin ETF to invest in the cryptocurrency’s price, a handful of firms have listed funds that track companies in the mining industry.
The bitcoin mining industry has faced headwinds over the last year, ranging from a Chinese crypto crackdown that prompted an exodus of miners to US lawmakers’ proposals to impose stringent tax-reporting requirements on operators.
But it is concerns about the environmental impact of bitcoin mining, its power consumption in particular, that have dogged the sector.
Valkyrie says 80% of the ETF’s holdings will be in companies using at least 50% renewable energy for mining. Its top 5 are Argo Blockchain, Bitfarms, Cleanspark, Hive Blockchain, and Stronghold Digital Mining — all of which have at 90% renewable usage, it said in a factsheet.
The Nasdaq listing comes after the SEC rejected an application for Valkyrie’s spot bitcoin ETF in December, citing a failure to meet investor protection requirements.
“We are continuing to work with regulators to help solve their concerns about our industry and are hopeful that we will one day see a spot Bitcoin ETF come to the US market,” a Valkyrie Funds spokesperson told Insider.