SEC Approves Bitcoin Mining ETF Focused on Renewable Energy

Bitcoin Mining ETF launched by Valkyrie Capital, focused on renewable energy, has been approved by the Securities and Exchange Commission (SEC) and began trading yesterday on Nasdaq under the ticker 'WGMI', a popular acronym in the crypto community for 'We are gonna make it'.

The Valkyrie Bitcoin Mining ETF primarily targets companies that use at least 77 percent renewable energy. According to the application submitted at the end of January, 80 percent of the ETF’s assets are directed towards companies that derive at least 50 percent of their total profits from bitcoin mining, which requires vast amounts of energy as miners compete to solve complex tasks to earn bitcoin and help secure the blockchain.

Argo Blockchain, Bitfarms, Cleanspark, Hive Blockchain, and Stronghold Digital Mining are the companies that hold the largest share in the ETF.

In a recent interview, Valkyrie Capital CEO Leah Wald stated that investors have 'an increased focus and desire for exposure to bitcoin miners'. Wald also cited the exodus of miners from China to locations such as New York State and Washington State as another reason for the ETF’s launch.

According to the SEC filing, former CEO of Guggenheim Partners Bill Cannon is the head of portfolio management for the ETF, while Steven McClurg, founder of blockchain company Theseus Capital, is Valkyrie’s Chief Investment Officer.

The Valkyrie Bitcoin Mining ETF is the latest in a wave of cryptocurrency-focused ETFs. Earlier this month, Grayscale launched its ETF titled 'Future of Finance' aimed at crypto and fintech companies.

However, not all recent attempts at cryptocurrency-focused ETFs have been successful; the SEC rejected applications from Fidelity, First Trust Advisors, and Skybridge for spot bitcoin ETFs last month.