Home News Crypto asset manager Valkyrie raises $10M in Series A round

Crypto asset manager Valkyrie raises $10M in Series A round


Litecoin founder Charlie Lee was one of the investors to place $ 10 million in venture capital in Valkyrie. Several venture funds and business angels have invested in the company. Including Precept Capital Management, 10X Capital, UTXO Management and Tron founder Justin Sun.

The company intends to use the capital received to hire additional employees and expand the product line. Valkyrie also plans to expand into Asian markets when conditions permit.

Further development of Valkyrie

The startup is launching cryptocurrency-specific mutual funds. It has filed an application with the US Securities Commission to launch a Bitcoin ETF.

According to Charlie Lee, Valkyrie presented an interesting plan for the further development of investment instruments, using the funds raised in the first round of Series A investment for the company.

The startup has already given investors the opportunity to invest in promising cryptocurrencies Pokladot (DOT) and Algorand (ALGO). Valkyrie’s third product: a closed-end fund focused on Bitcoin.

Valkyrie hopes their exchange-traded fund can compete with Grayscale, the largest crypto asset management company. In total, she manages assets of $ 31 billion.

Valkyrie submitted an application to the regulator to launch a Bitcoin ETF in January 2021.

The open Bitcoin ETF was supposed to receive US SEC approval on June 26th. But the Regulator postponed the application deadline to August 10th. The American authorities have not yet generally decided on their position regarding the appearance on the stock exchange of securities related to cryptocurrency.

SEC and Bitcoin ETFs

Now the SEC has several applications for Bitcoin ETFs at once. Talk of launching a Bitcoin exchange-traded fund has been going on in the US since summer 2018.

However, so far the SEC has not approved a single one.

Thus, at the moment, there are no funds in the United States that pave the way for retail investor investments in cryptocurrencies. Valkyrie strives to develop such tools without violating the Regulator’s prohibition.

A Bitcoin ETF is actually a type of security. This tool is understandable for traders from the world of traditional finance, so it is also of interest in the crypto environment. Enthusiasts hope that the emergence of bitcoin ETFs will attract large players to the exchanges.

The SEC only allows accredited investors to invest in digital assets. The startup has figured out how to put small private businesses into this class. The issue of shares on the over-the-counter market of existing crypto funds is also one of the steps that expand legal access to cryptocurrencies.

The probability of approval is high

Experts believe that the SEC will soon be able to satisfy the request, especially since the situation on the cryptocurrency market has changed significantly in recent months. According to them, this is a natural step in the development of the market.

Traditional investors may show interest in the fund, since the arrival of institutional investors on the crypto market is not an accident, not a fashion, but a trend. This tool is more familiar to traditional players and can be used by investors who are not ready to buy cryptocurrency directly due to its volatility. Recall that in February, the world’s first Bitcoin ETF was approved in Canada.

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