Valkyrie amends Bitcoin Fund S-1 filing with enhanced custody and valuation rules

Valkyrie Investments refiled an amended Form S-1 with the Securities and Exchange Commission connected Thursday for its Valkyrie Bitcoin Fund, adding much precise rules astir custody, valuation, effect investments, and risks arsenic the cryptocurrency concern conveyance awaits regulatory support to commercialized connected Nasdaq.

The caller filing updates the scale utilized to worth the fund’s Bitcoin from Lukka Prime to the CME CF Bitcoin Reference Rate – New York Variant, which calculates the notation complaint arsenic of 4 PM Eastern Time alternatively than 4 PM London time. It besides shrinks the fund’s handbasket size from 50,000 shares down to 5,000 shares for creating and redeeming the Valkyrie Bitcoin Fund’s shares.

More notable are the details connected however the money volition clasp its Bitcoin assets. Valkyrie specified that each backstage keys are present kept successful offline acold retention with the fund’s custodian, Coinbase. It besides outlined the premier brokerage statement that allows money assets to beryllium held successful Coinbase’s blistery and acold omnibus storage.

Risk and custody

The amended filing came with a lengthy caller conception connected risks, citing Coinbase’s conflict with the SEC, which filed civilian charges this summertime implicit allegations that Coinbase was illegally operating arsenic an unregistered exchange.

Other tweaks see adding a currency custodian, specifying however the fund’s main marketplace for bitcoin is determined for accounting purposes, and reserving the close for Valkyrie to alteration the fund’s bitcoin valuation methodology without shareholder say-so.

The caller particulars astir custody, valuation, and regulatory hazard travel arsenic the marketplace awaits the SEC’s ruling connected whether to let the Valkyrie Bitcoin Fund to commercialized connected nationalist markets.

If approved, the bitcoin money would exposure retail investors to the archetypal cryptocurrency done shares trading connected Nasdaq nether the “BRRR” ticker. Until then, the hold for an concern conveyance tied to nonstop Bitcoin ownership continues.

The station Valkyrie amends Bitcoin Fund S-1 filing with enhanced custody and valuation rules appeared archetypal connected CryptoSlate.