- Valkyrie Bitcoin trust has been opened to all on May 1, 2021
- The trust has observed growing interest of institutions and firms like dental clinic and car dealer
- Such interested firm have been found putting a significant portion of their excess cash
- The BTC trust charge a minimal fee in comparison to other prominent trusts
- The investment firm has also applied to launch a BTC ETF
Valkyrie Bitcoin trust has been opened to all accredited investors on Saturday. The trust was opened before only but only to a handful of Valkyrie clients. This time the trust is open to all accredited investors. According to McClurg, the chief investment officer at Valkyrie, the trust has seen interest from institutions and enterprises. Such corporations and businesses also include dental clinics and car dealerships. McClurg has also highlighted that several customers are putting excess cash in Bitcoins while searching for liquidity and yield.
Bitcoin attracting a significant portion of the cash
Bitcoin has attracted mainstream attention from financial institutions as a store of value and inflationary hedge. Valkyrie Bitcoin trust has also observed tremendous growth in the interest of institutions and enterprises in Bitcoin. According to McClurg, such firms seek an asset offering liquidity and yield together. Hence, as Bitcoin can fulfil their needs, the firms are putting excess cash in the asset.
McClurg has highlighted that few of the firms have excess cash that is not being used in regular operations. Such firms are putting a significant amount of their excess cash into Bitcoin through the Valkyrie Bitcoin trust. Simultaneously, in several cases, the firms are putting 50% of their cash.
Valkyrie Bitcoin trust charges minimal fees
According to McClurg, the Valkyrie Bitcoin trust has a 40 basis-point management fee. And the fee doesn’t include a few smaller custodial fees that should disappear if the assets under management grow. However, he didn’t reveal the current value of total assets under management with Valkyrie.
If we compare the fees with Grayscale, the world’s largest BTC trust that charges 2% fees, it seems Valkyrie charges way lower fees. On the other side if we compare the 0.49% of fees that Osprey charges on its closed-end BTC fund, then also Valkyrie charges very minimal fees.
The investment firm is interested in BTC ETF
The investment firm has been interested in launching the BTC exchange-traded fund (ETF). Late on Friday, the New York Stock Exchange (NYSE) filed a 19B-4 Form on behalf of Valkyrie. However, the form kicked off a 45-days review period. On the other side, the US Securities and Exchange Commission (SEC) has acknowledged the filing. During the period allotted by NYSE, the US SEC will have to approve, disapprove, or extend the review date.