Alternative asset management firm Valkyrie Investments has announced the launch of a new exotic trust that includes Avalanche (AVAX), Binance (BNB), Terra (LUNA), Zilliqa (ZIL), Polygon (MATIC) and other Layer 1 cryptocurrencies.
CIO Steven McClurg says that the company's depth and breadth of cryptocurrency coverage make it possible to offer a product that tracks the value of a big basket of cryptocurrencies.
Unlike other investment products overseen by the company, the multi-coin fund is specifically focused on staking yields. Annual rewards are expected to reach roughly 6%.
London-based cryptocurrency custodian Copper Technologies will be responsible for safeguarding funds.
It has already launched three Bitcoin-adjacent exchange-traded funds that are trading on the Nasdaq exchange.
In October, it listed the second futures-based Bitcoin ETF in the U.S. However, its proposal to launch an ETF that directly tracks the price of the largest cryptocurrency was rejected by the U.S. Securities and Exchange Commission (SEC) in December. The securities watchdog is yet to approve such a product.
In November, the crypto asset manager followed Mike Novogratz's Galaxy Digital by rolling out a decentralized fund (DeFi) fund that offers investors an opportunity to earn yield from lending, staking and farming.
Gamza Khanzadaev
Tomiwabold Olajide
Godfrey Benjamin