Shares of the Valkyrie Bitcoin Fund (NASDAQ:BRRR) are in the red on its first day of trading. Trading of the BRRR exchange-traded fund (ETF) was made possible after the U.S. Securities and Exchange Commission (SEC) announced that it had approved the listing and trading of 11 spot Bitcoin (BTC-USD) exchange-traded products (ETPs). The Valkyrie ETF will seek to track the returns of Bitcoin represented by the CME CF Bitcoin Reference Rate (BRR).
Valkyrie Digital Assets, the sponsor behind BRRR, will waive sponsor fees during the first three months of trading in an attempt to attract investors. Afterward, the fee will increase to 0.25%.
“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,” said Valkyrie CIO Steven McClurg. “For serious investors who want exposure to bitcoin, we believe that our specialized crypto expertise makes us the right manager for them.”
BRRR ETF Alert: 7 Things to Know as the Valkyrie Bitcoin ETF Starts Trading Today
- Valkyrie held 11.34 Bitcoin with a value of $520,000 as of Jan. 10. These figures are likely to increase.
- Its Bitcoin custodian is Coinbase (NASDAQ:COIN).
- Valkyrie took a shot at other spot Bitcoin ETF providers in a press release, noting that it will focus on making its ETF the best out there instead of spending millions on marketing and advertisements.
- Other spot Bitcoin ETFs include BlackRock’s (NYSE:BLK) iShares Bitcoin Trust (NASDAQ:IBIT), the ARK 21Shares Bitcoin ETF (NYSE:ARKB) and the Grayscale Bitcoin Trust (NYSEMKT:GBTC). These competitors are charging fees between 0.2% and 1.5%, with Grayscale boasting the highest fee of 1.5%.
- Besides BRRR, Valkyrie also provides the Valkyrie Bitcoin and Ether Strategy ETF (NASDAQ:BTF) and the Valkyrie Bitcoin Miners ETF (NASDAQ:WGMI).
- While the SEC approved spot Bitcoin ETPs, Chair Gary Gensler cautioned that Bitcoin is still a speculative asset that is used for a variety of illegal purposes.
- “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,” said Valkyrie CEO Leah Wald.
On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
