Valkyrie Launches its First Multi-coin Trust
Investment offering seeks to pass along staking yields of up to 6%
Valkyrie CEO Leah Wald | Blockworks exclusive art by axel rangel
key takeaways
- Industry at an “inflection point” where family offices and high-net-worth individuals are seeking multi-asset exposure, Valkyrie CIO says
- Trust currently invests in eight assets, including AVAX, BNB and ATOM
Valkyrie Investments has launched its first multi-coin trust, as the product was designed to offer diversified exposure to protocols and pass along staking yields to investors.
The actively managed Valkyrie Multi-Coin Trust is focused on investing in blockchain networks and tokens that the firm believes are well-positioned to expand market share. It is for accredited investors only and has a minimum investment of $100,000.
The trust, which carries a management fee of 2.5%, was launched after discussions with potential investors looking for a product that represented the firm’s “highest-conviction plays” in the space, said Valkyrie Chief Investment Officer Steven McClurg.
“We launched this fund now because we believe the industry is at an inflection point where family offices, high-net-worth individuals and others are keen to enter the space and are looking for opportunities that go beyond just buying and holding a single asset,” he told Blockworks.
The trust currently allocates 10% of the fund’s capital to each of Avalanche (AVAX), Binance (BNB), Cosmos (ATOM), Helium (HNT), Terra (LUNA), Polygon (MATIC), and Zilliqa (ZIL), plus a 30% allocation to the Gemini USD (GUSD) stablecoin. The investments can change over time as crypto markets evolve.
“We believe that these protocols all have a bright, bullish future, and should see increased adoption and engagement in the coming years,” McClurg added, noting that the firm believes in the protocols’ founding teams and the projects being built on them.
Focusing on these coins also enables the firm to return staking yield to investors, he said, referring to the inflation rewards earned for participating in a network’s proof-of-stake consensus. The trust seeks to target an annual yield of four to six percent, and the fund’s custodian is Copper Technologies.
Based in Nashville, Valkyrie reached $1 billion in assets under management in February. The company currently offers six single-asset trusts focused on bitcoin, algorand, polkadot, dash, TRON and Zilliqa.
The firm also has three ETFs trading in the US, including a bitcoin miners ETFs and a bitcoin strategy fund that invests in futures contracts.
McClurg said Valkyrie has more ETFs and trusts in the works, but declined to share specifics. The company is one of a handful of issuers seeking to launch a spot bitcoin ETF, which the SEC has not yet approved.
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