The bitcoin bullish investment vehicle Balance Sheet Opportunities ETF (VBB), which had a lifespan of less than a year, will be liquidated, according to cryptocurrency asset manager Valkyrie Funds.
The fund, which has traded on Nasdaq since December 2021, will be liquidated at the end of October and subsequently delisted, according to a statement from the business. According to regulatory documents, shareholders who hold the exchange-traded fund through liquidation will get a cash redemption for the value of their shares.
Will the investors sell their shares?
Shareholders have time until October 28 to liquidate their shares prior to the Bitcoin ETF’s liquidation, and brokerage costs are not anticipated to alter. Shareholders will receive a cash payout by October 31 equal to their stake’s net asset value. The fund will be liquidated along with being removed from the Nasdaq Exchange.
Notably, despite holding stakes for businesses like electric vehicle producer Tesla and MicroStrategy (MSTR), Valkyrie’s ETF has not received significant investor interest.
The choice was made after the fund predicted that the current decline in cryptocurrency prices may have reached its lowest point.
What is the issue with ETFs?
The United States Securities and Exchange Commission rarely grants permission for ETFs. However, with future ETFs, this is no longer the case as the government has started approving Bitcoin futures since last year. The three most prominent examples of this are Valkyrie, ProShares, and VanEck.
On the other hand, the crypto spot ETFs continue to have difficulties obtaining SEC approval. Despite a sizable number of approvals, the commission is so rigorous about the ETF that it has yet to approve any of them. The agency receives harsh criticism for this from a number of regulators, lawmakers, business titans, and organizations.
