One Bitcoin fund’s ticker symbol, “BRRR,” represents the lovely, sweet sound of money printing.
The financial services company Valkyrie Digital Assets revised its Securities and Exchange Commission file for the Valkyrie Bitcoin Fund on Wednesday, submitting a new prospectus that reflects the prevalent narrative around cryptocurrencies at the time.
Valkyrie reenters the queue alongside other companies with applications for cryptocurrency-related exchange-traded products on the SEC’s desk as digital asset prices surge in the wake of BlackRock’s attempt to establish America’s first spot-based Bitcoin ETF and as a Wall Street-backed exchange executes its first trades.
In its filing, Valkyrie claims that the shares “are designed to give investors with a cheap and practical way to invest in Bitcoin.” “The shares” are fractional undivided units of ownership and beneficial interest in the trust.
According to the business, the Valkyrie Bitcoin Fund’s objective is to mirror the price of the CME CF Bitcoin Reference Rate – New York Variant (BRRNY), which is determined using trade data collected from a few key Bitcoin exchanges, including Coinbase, Bitstamp, Gemini, itBit, Kraken, and LMAX Digital.
According to the filing, BRRNY, which trades on the Chicago Mercantile Exchange, is the identical value used to settle Bitcoin futures contracts.
A number of modifications have been made to the amended application since it was first submitted in January 2021, including the inclusion of its creatively called ticker. Previously, Valkyrie suggested that its fund be listed on NYSE Arca; however, it is now considering the Nasdaq.
The custodian of the Bitcoin connected to the fund was previously identified by Valkyrie as Coinbase Custody Trust Company. But the revised prospectus no longer mentions Coinbase’s custodial company.
The fund’s price would be adjusted every day between 4:00 and 4:30 pm ET, when trading on Wall Street closes to a daily closure. If authorized, Valkyrie would be permitted to issue an infinite number of shares for the investment. The fund does point out that the network’s ceiling of 21 million total Bitcoins that may ever be mined restricts its capacity to collect Bitcoin.
Decrypt contacted Valkyrie Digital Assets for comment, but they did not answer right away.