Digital asset fund manager Valkyrie Funds is closing and delisting its Valkyrie Balance Sheet Opportunities ETF, which offers exposure to Bitcoin.
The VBB fund started trading last December and focuses on companies investing directly and indirectly in Bitcoin and the Bitcoin ecosystem. Its top holdings include Tesla, Microstrategy, Block, BlackRock and Coinbase.
Valkyrie plans to liquidate the fund and subsequently delist it from the Nasdaq Exchange.
The asset manager says the action is part of an "ongoing review of products aimed at ensuring the firm best meets client demand." And after consulting with the board of directors, Valkyrie determined "discontinuing the fund was the best course of action for all involved."
Shareholders have until the end of the trading day on Oct. 28 to sell their shares. The fund will liquidate on Oct. 31 and those still holding shares will receive a cash distribution equal to the net asset value of their holdings.
VBB Stock Performance
After first opening on Dec. 15, 2021 at $24.86, VBB stock quickly hit its peak of $25.97 on Dec. 27 and has since tumbled with the crashing price of cryptocurrencies. VBB stock is down more than 54% so far this year while the price of Bitcoin has fallen about 58%. Shares traded around $11 on Wednesday, down a bit more than 2%.
Valkyrie still has two Bitcoin-focused ETFs available, its Bitcoin Strategy ETF and the Bitcoin Miners ETF.
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