Valkyrie launches Bitcoin mining ETF "WGMI," approved to list on Nasdaq

The Bitcoin mining industry ETF "WGMI" launched by Valkyrie has been approved and will be listed on Nasdaq today (8). It will consist of securities where at least 80% of the "income or profits come from Bitcoin mining or related activities" with a ratio exceeding 50%.

Mountain Doesn't Move, Road Turns: U.S. Investors' Demand for Bitcoin

Despite the increasing interest of U.S. investors in Bitcoin, the U.S. Securities and Exchange Commission (SEC) still does not allow ETFs tracking Bitcoin spot prices to be listed in the U.S., leading market funds to seek alternative routes.

For example, last year ProShares launched the ProShares Bitcoin Strategy ETF BITO on the New York Stock Exchange (NYSE), which is based on Bitcoin futures introduced by CME. It uses investment derivative products or industries highly correlated with Bitcoin to achieve a similar effect as direct investment in Bitcoin spot prices. The performance of BITO after its debut also confirms the demand of U.S. investors for investing in Bitcoin.

WGMI is also using a similar method this time. According to the document submitted to the SEC on January 26, WGMI will not directly hold Bitcoin spot prices, but at least 80% of its net assets will be benchmarked against revenues or profits accounting for over 50% from securities related to Bitcoin mining or providing mining-related hardware and software. The document also states that Valkyrie will allocate up to 20% of the ETF's net assets to holding Bitcoin as part of the majority of the company's net assets.

Regarding the environmental and energy issues of Bitcoin mining, Valkyrie has also responded. It emphasizes that around 77% of miners in the ETF portfolio use renewable energy for mining, while the average usage of renewable energy in the U.S. is only 31%, aiming to stand firm on relevant issues.