The ever-present fascination with making money led to the creation of a Bitcoin fund with the ticker name “BRRR.” As reported by Cointelegraph, financial services firm Valkyrie Digital Assets recently updated its filing for the Valkyrie Bitcoin Fund with the Securities and Exchange Commission, emphasizing the prevalent crypto narrative as digital asset prices soar amid BlackRock’s announcement for America’s first spot-based Bitcoin ETF. With Wall Street-backed exchanges venturing into their first trades, Valkyrie is in line with other companies waiting for their crypto-related exchange-traded products to be approved by the SEC.
Valkyrie aims to provide investors with an affordable and convenient method to invest in Bitcoin through its fund offering, which would reflect the price of CME CF Bitcoin Reference Rate – New York Variant (BRRNY). This benchmark is determined by the aggregated trading data from major Bitcoin exchanges, such as Coinbase, Bitstamp, Gemini, itBit, Kraken, and LMAX Digital. Interestingly, the BRRNY serves the same purpose for Bitcoin futures contracts settlement on the Chicago Mercantile Exchange.
Comparing Valkyrie’s updated filing to the original from January 2021, there are several notable changes, including the addition of the catchy ticker name. While the company initially sought to list its fund on NYSE Arca, it now appears focused on the Nasdaq. Furthermore, Coinbase Custody Trust Company, initially named as the custodian for Bitcoin associated with the fund, is no longer mentioned in the updated prospectus.
If approved, Valkyrie would have the freedom to issue an unrestricted number of shares for the fund, updated daily between 4:00 and 4:30 pm ET, corresponding with the closure of Wall Street trading. However, there is a limitation on the fund’s ability to amass Bitcoin; it is restricted by the network’s cap of 21 million coins that can ever be mined. Valkyrie Digital Assets has yet to respond to requests for comments on the matter.
While the prospect of an accessible and cost-effective investment vehicle in Bitcoin is enticing for investors, it is essential to consider potential drawbacks. Regulatory hurdles may come into play, with the SEC possibly imposing restrictions on the fund or requiring additional compliance measures. Additionally, the introduction of digital assets into traditional financial markets could lead to increased scrutiny from regulators, affecting the overall market perception.
In conclusion, the Valkyrie Bitcoin Fund represents a significant step towards merging traditional and digital finance, possibly opening doors to broader investment opportunities in the crypto space. The fund’s potential success will depend on its ability to overcome regulatory challenges and its impact on the market sentiment about digital assets.
Source: Decrypt
