No Gimmicks, No Marketing Stunts, Just Bitcoin: Introducing the Valkyrie Bitcoin Fund

Rhea-AI Summary

Valkyrie Investments Inc. (NASDAQ: BRRR) launches the Valkyrie Bitcoin Fund, one of the first spot bitcoin ETFs in the U.S. The fund aims to provide sophisticated but simplified access to bitcoin for investors and institutions. Valkyrie will waive the sponsor fees for BRRR for the first three months of trading. The company is focused on leveraging its investment management expertise and crypto knowledge to deliver high-quality digital asset-focused ETFs and investment products.

Insights

Financial Analyst

The launch of Valkyrie Bitcoin Fund (BRRR) represents a significant development in the digital asset space, particularly for the U.S. market where demand for regulated investment vehicles for cryptocurrencies is growing. The introduction of an ETF offers a regulated, potentially less risky entry point for institutional and retail investors looking to gain exposure to bitcoin without directly purchasing or holding the cryptocurrency.

By waiving sponsor fees for the initial three months, Valkyrie aims to attract early investors and gain market share quickly. While fee waivers can be an attractive incentive, it's important to assess the long-term fee structure and its competitiveness within the market. The fund's performance will be closely monitored, as it must contend with the inherent volatility of bitcoin and regulatory scrutiny. Investors will weigh the potential for high returns against the risks associated with digital assets.

As the ETF market for digital assets matures, Valkyrie's entry could prompt other firms to launch similar products, potentially increasing liquidity and stability in the cryptocurrency market. However, the success of BRRR will depend on various factors including bitcoin's price movements, investor sentiment towards cryptocurrency and the regulatory environment.

Market Research Analyst

Valkyrie's strategic decision not to spend heavily on marketing but rather to focus on their crypto investment management expertise could resonate well with a more discerning class of investors. This approach may differentiate Valkyrie in a space that's becoming increasingly crowded and competitive.

The ETF's performance will be an indicator of the market's acceptance of bitcoin as a legitimate asset class. Success of the BRRR could influence the perception of digital assets, potentially leading to increased adoption by traditional investment portfolios. Moreover, Valkyrie's positioning as a specialized digital asset company with a seasoned team could lend credibility and attract investors who are looking for domain-specific expertise.

It will be important to monitor the uptake of the Valkyrie Bitcoin Fund post-fee-waiver period, as well as the competitive responses from other market participants. The fund's impact on the broader digital asset ETF landscape will provide insights into the evolving dynamics of cryptocurrency investment products.

Cryptocurrency Expert

The Valkyrie Bitcoin Fund's launch is a notable moment in the cryptocurrency industry, signaling a maturing market that is increasingly interfacing with traditional financial structures. The fund's reliance on Valkyrie's crypto knowledge and investment management expertise underscores the importance of specialized skills in navigating the complexities of digital asset markets.

Investors will be observing how Valkyrie manages the fund's exposure to bitcoin's volatility and how it navigates the regulatory environment, which is still in a state of flux. The fund's ability to provide simplified access to bitcoin could be a game-changer for investors who are interested in cryptocurrencies but are deterred by the technical challenges of direct ownership.

Furthermore, the success of the Valkyrie Bitcoin Fund could spur further innovation and development of cryptocurrency-related financial products, potentially leading to greater integration of digital assets in mainstream finance. The fund's performance could also have implications for bitcoin's liquidity and price stability.

Valkyrie combines its expertise in investment management, successful crypto track record to launch one of the first spot bitcoin ETFs in the U.S.

NASHVILLE, Tenn.--(BUSINESS WIRE)-- Valkyrie Investments Inc. (“Valkyrie”), a specialized digital asset investment management company, is proud to announce the launch of the Valkyrie Bitcoin Fund (NASDAQ: BRRR) (the “Fund”), which is sponsored by Valkyrie’s subsidiary, Valkyrie Digital Assets LLC (the “Sponsor”). The Valkyrie Bitcoin Fund is an exchange-traded fund (“ETF”) that invests in bitcoin, giving investors sophisticated but simplified access to the digital commodity without the hassle that comes with accessing bitcoin via other methods. The Sponsor will waive the sponsor fees for BRRR for the first three months of trading.

Valkyrie is solely focused on leveraging its track record of investment management expertise and dedicated crypto knowledge with the goal to deliver the best possible investment product for institutions, advisors and investors, rather than spending millions of dollars on marketing stunts and gimmicks like other Spot Bitcoin ETF issuers.

“Bitcoin’s potential has still yet to be realized fully and only a small subset of the world understands the legitimate impact this asset will have on the global economy,” says Steven McClurg, CIO of Valkyrie. “For bitcoin to realize its full potential we need to move away from gamifying this space and treat it like the sophisticated and seasoned asset class that it is. For serious investors who want exposure to bitcoin, we believe that our specialized crypto expertise makes us the right manager for them.”

Valkyrie was founded with the intention of delivering high-quality, digital-asset focused ETFs and investment products. Valkyrie was among the pioneers in delivering bespoke, actively-managed crypto funds at the institutional level. The nimble team brings exceptional pedigrees that span traditional finance and crypto with backgrounds across firms such as Guggenheim Partners, UBS, Rydex Funds, Chicago Board of Trade, Chicago Mercantile Exchange, and The World Bank.

“The launch of BRRR has been in the making for nearly three years, and the Valkyrie team has worked tirelessly with regulators and institutional partners to bring this fund to life. I am exceptionally proud to see this fund live and trading – it’s a remarkable milestone for digital assets and for Valkyrie,” says Leah Wald, CEO of Valkyrie. “This is just the beginning of a new wave and we’re proud to be leaders in delivering a breakthrough product with big plans ahead.”

To learn more, or invest, in the Valkyrie Bitcoin Fund, click here.

About Valkyrie

Valkyrie is a specialized alternative financial services firm at the intersection of traditional finance and the emerging cryptocurrency sector whose affiliates aim to offer asset management, research and other services. Headquartered in Nashville, Valkyrie aims to provide exposure to the emerging digital asset class through traditional financial vehicles. Valkyrie is led by seasoned asset managers who have previously launched multiple ETFs, publicly traded funds and Exchange Traded Products, including digital asset funds with backgrounds across Guggenheim Partners, UBS, Chicago Board of Trade, Chicago Mercantile Exchange, and the World Bank.

Disclosures and Risks

Investing Involves Risks. The loss of principal is possible. The Fund may not be suitable for all investors. Investors should consult a financial advisor/financial consultant before making any investment decisions.

The Fund’s investment objectives, risks, charges and expenses should be considered before investing. The prospectus contains this and other important information, and it may be obtained at https://www.valkyrieinvest.com/brrr/. Read it carefully before investing.

Bitcoin trading prices are volatile and shareholders could lose all or substantially all of their investment in the Fund. This is a new ETF with limited operating history. Shares of ETFs are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. Any applicable brokerage fees and commissions apply and will reduce returns.

Bitcoin Investing Risk. The Fund invests in bitcoin. Bitcoin is a relatively new and highly speculative investment. The risks associated with bitcoin include the following:

Bitcoin is a new technological innovation with a limited history. There is no assurance that usage of bitcoin will continue to grow. A contraction in use of bitcoin may result in increased volatility or a reduction in the price of bitcoin, which could adversely impact the value of the Fund. The Bitcoin Network was launched in January 2009, platform trading in bitcoin began in 2010, which limits a potential shareholder’s ability to evaluate an investment in the Fund.

The Fund is exposed to risks associated with the price of bitcoin, which is subject to numerous factors and risks. The price of bitcoin is impacted by numerous factors, including:

• The total and available supply of bitcoin, including the possibility that a small group of early bitcoin adopters hold a significant proportion of the bitcoin that has thus far been created and that sales of bitcoin by such large holders may impact the price of bitcoin;
• Global bitcoin demand, which is influenced by the growth of retail merchants’ and commercial businesses’ acceptance of bitcoin as payment for goods and services, the security of online bitcoin exchanges and public bitcoin addresses that hold bitcoin, the perception that the use and holding of bitcoin is safe and secure, the lack of regulatory restrictions on their use, and the reputation regarding the use of bitcoin for illicit purposes;
• Global bitcoin supply, which is influenced by similar factors as global bitcoin demand, in addition to fiat currency (i.e., government currency not backed by an asset such as gold) needs by miners and taxpayers who may liquidate bitcoin holdings to meet tax obligations;
• Investors’ expectations with respect to the rate of inflation of fiat currencies and deflation of bitcoin;
• Foreign exchange rates between fiat currencies and digital assets such as bitcoin;
• Interest rates;
• The continued operation of bitcoin exchanges in the United States and foreign jurisdictions, including their regulatory status, trading and custody policies, and cyber security;
• Investment and trading activities of large investors, including private and registered funds, that may directly or indirectly invest in bitcoin;
• Regulatory measures, if any, that restrict the use of bitcoin as a form of payment or the purchase or sale of bitcoin, including measures that restrict the direct or indirect participation in the bitcoin market by financial institutions or the introduction of bitcoin instruments;
• The maintenance and development of the open-source software protocol of the Bitcoin Network;
• Increased competition from other cryptocurrencies and digital assets, including forks of the Bitcoin Network;
• Developments in the information technology sector;
• Global or regional political, economic or financial events and situations;
• Investor or Bitcoin Network participant sentiments on the value or utility of bitcoin; and
• The dedication of mining power to the Bitcoin Network and the willingness of bitcoin miners to clear bitcoin transactions for relatively low fees.

Negative developments in any of these factors could adversely impact an investment in the Fund.

A decline in the adoption of bitcoin could negatively impact the performance of the Fund. As a new asset and technological innovation, the bitcoin industry is subject to a high degree of uncertainty. The adoption of bitcoin will require growth in its usage for various applications that include retail and commercial payments, cross-border and remittance transactions, speculative investment and technical applications.

Paralel Distributors LLC (“Paralel”) is the marketing agent for the Valkyrie Bitcoin Fund. Paralel is not affiliated with Valkyrie Investments Inc. or Valkyrie Digital Assets LLC.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240111392503/en/

Trevor Davis, Gregory FCA for Valkyrie

215-475-5931

trevor@gregoryfca.com

Source: Valkyrie Investments Inc.

FAQ

What is the ticker symbol for Valkyrie Bitcoin Fund?

The ticker symbol for Valkyrie Bitcoin Fund is NASDAQ: BRRR.

What is the goal of the Valkyrie Bitcoin Fund?

The goal of the Valkyrie Bitcoin Fund is to provide sophisticated but simplified access to bitcoin for investors and institutions.

What are the sponsor fees for BRRR for the first three months of trading?

The sponsor fees for BRRR will be waived for the first three months of trading.

Who is the CEO of Valkyrie?

The CEO of Valkyrie is Leah Wald.

What is the background of the Valkyrie team?

The Valkyrie team has exceptional pedigrees that span traditional finance and crypto with backgrounds across firms such as Guggenheim Partners, UBS, Rydex Funds, Chicago Board of Trade, Chicago Mercantile Exchange, and The World Bank.