Valkyrie Digital Assets has filed for a new exchange-traded fund (ETF) that would invest in companies that hold bitcoin on their balance sheets.
The firm submitted its filing to the Securities and Exchange Commission (SEC) for the Valkyrie Innovative Balance Sheet ETF on Friday.
The practice of adding bitcoin to a company’s balance sheet gained popularity as MicroStrategy continued to make large purchases. Soon after, S&P 500 company Tesla added bitcoin to its balance sheet.
The fund will primarily invest in common stocks, but it may invest up to 20% of net assets in securities. It plans to focus on investing in bitcoin-related firms, especially those with what it terms “innovative balance sheets.”
Valkyrie also lodged a bitcoin ETF prospectus with the SEC in January of this year, joining others in an increasingly crowded bid for first approval.