Valkyrie Investments Tops $1 Billion In Crypto Assets Under Management


Valkyrie Investments announced on Tuesday it has surpassed $1 billion in assets under management (AUM). 

“From individuals … to family offices, pensions, and endowments eagerly allocating to hedge funds and trusts, our industry has a firm footing on which to continue growing through the remainder of this year and beyond,” Valkyrie CEO Leah Wald said in a press release.

The firm launched its Strategy Bitcoin fund (BTF), the second SEC-approved Bitcoin exchange-traded fund (ETF), in late October, the firm now manages two other “bitcoin-adjacent” ETFs.

With about $46 million in AUM, the ETF side of Valkyrie’s business amounts to a marginal 5% of its bottom line, according to Bloomberg Intelligence senior ETF analyst, Eric Balchunas.

Cryptocurrencies are still trading 32% lower. The total market value of cryptos plunged from $2.92 to $1.98 trillion, according to data from Coinmarketcap. The digital assets declined sharply following the Federal Reserve’s decision about raising interest rates in March.

Despite the firm’s ETH assets appearing smaller compared with competitors , Bloomberg’s Balchunas argued that it is important for crypto ETF issuers to stake a claim in the budding financial product line early. He suggested that, the category for digital asset ETFs “will be massive.”

In addition to crypto’s dramatic priceswings, regulation is also a major detriment for many U.S. financial advisors. According to a survey last month from digital investment manager Bitwise, only 15% of advisors said they allocated client portfolios to crypto in 2021. The vast majority of those respondents cited “regulatory uncertainty” and preference for a Bitcoin spot ETF, which has yet to be approved by the SEC.