Valkyrie bitcoin mining ETF to list on Nasdaq; all you need to know

cnbctv18.com:

The bitcoin mining exchange-traded fund (ETF) from the crypto asset management firm Valkyrie is slated to list on the Nasdaq stock exchange on February 8. The Valkyrie Bitcoin Miners ETF will invest 80 percent or more of its assets in companies that earn at least half their profits from bitcoin mining activity.In a filing with the US Securities and Exchange Commission (SEC), Valkyrie CEO Leah Wald said: “An increased focus and desire to gain exposure to bitcoin miners from investors” prompted the company to apply on January 26 to the SEC to offer the ETF.An ETF is a pool of diverse securities that track a particular index, sector or any other asset.

They are like mutual funds but with the exception that they can be bought and sold on a stock exchange.Why is this a step forward for crypto ETFs and mining companiesHistorically, only futures ETFs (an agreement to buy or sell shares of an ETF at an agreed-upon price in the future) have been allowed in the market as spot ETFs have not been approved by the SEC. This is a small but important step towards future institutional adoption of bitcoin and other cryptocurrencies.This will also spotlight bitcoin cryptocurrency mining companies that have been slowly becoming more popular as the demand for crypto trading has also been increasing amongst the general public.This could also be a floodgate for other spots ETFs.