Introduction
Crypto ETFs, an acronym for Exchange-Traded Funds, are investment products for retail and institutional traders plus investors. ETFs of digital assets allow them to gain exposure to cryptocurrencies without owning them. It further eliminates the need to store them in their wallet since the Fund does it for them. Gains losses via crypto ETFs are linked to a specific cryptocurrency. For instance, Spot Bitcoin ETFs are linked to BTC and hence, track its performance in the market to fetch the outcome.
BRRR, the CoinShares Valkyrie Bitcoin Fund, is an ETF that issues shares to holders. Like any other crypto ETF, it does not require them to directly hold the token. It is the responsibility of the Trust to own Bitcoin – something that it does directly. It is relevant to current market conditions since the demand is higher, especially with the ongoing hype for Spot Ether ETF and other potential tokens.
BRRR ETF Details
| As of 13/08/2024 | |
|---|---|
| Exchange | CBOE |
| CUSIP | 92189K105 |
| ISIN | US92189K1051 |
| Intraday NAV (IIV) | HODLIV |
| Shares Outstanding | 9,650,000 |
| Options | Expected |
BRRR ETF Investment Objectives
There are two core investment objectives of BRRR ETF. The first is to ensure that the BRRR ETF performance value is reflected as it is represented by the CME CF Bitcoin Reference Rate – New York Variant. The final picture that is rolled out comes after the necessary deduction pertaining to the liabilities and expenses of the Trust. Second, remain cost-efficient and convenient for investors to invest their money in the digital asset, Bitcoin in this case.
However, it is important to note that the Trust does not assure achievement of its investment objective. There is only a single ETF investment strategy – invest substantially all its assets in Bitcoin.
BRRR ETF Performance Analysis
Monthly Performance
| As of 31/07/2024 | 1 MO | 3 MO | YTD | 1 YR | 3 YR | 5 YR | 10 YR | LIFE |
|---|---|---|---|---|---|---|---|---|
| HODL (NAV) | 9.17 | 9.84 | -- | -- | -- | -- | -- | 43.64 |
| HODL (Price) | 8.83 | 10.52 | -- | -- | -- | -- | -- | 42.39 |
The monthly performance of BRRR ETF analysis has shown an NAV of $68.68 as of 13/08/2024. The 1-month and 3-month NAV & price performance reflects 9.17 and 9.84, respectively. BRRR MKT has had 37.36%since its inception date 04/01/2024.
Quaterly Performance
| As of 30/06/2024 | 1 MO | 3 MO | YTD | 1 YR | 3 YR | 5 YR | 10 YR | LIFE |
|---|---|---|---|---|---|---|---|---|
| HODL (NAV) | -10.6 | -14.74 | -- | -- | -- | -- | -- | 31.58 |
| HODL (Price) | -11.3 | -15.52 | -- | -- | -- | -- | -- | 30.85 |
The lifetime quarter-end performance in NAV and Market Price is 31.58% and 30.85%. HODL’s NAV & price on a quaterly basis comes to -14.74 and -15.52 in the last 3 months.
NAV & Premium/ Discount History
| 12-Month High (03/13/24) | 82.73 |
|---|---|
| As of 13/08/2024 | |
| 12-Month Low (01/23/24) | 44.4 |
Prices
As of 13/08/2024
| NAV/ Market Price | Volume 30-Day Avg./ Last Trading Day | Daily Change NAV/ Last Price | YTD Change NAV/ Last Price | Premium/ Discount | 30-Day Median Bid Ask Spread |
|---|---|---|---|---|---|
| $68.68 | 274,835 | $1.86 / +2.78% | 37.36% | $0.18 | 0.08% |
| $68.86 | 95,175 | $2.07 / +3.10% | 37.72% | 0.26% |
BRRR ETF Investment Benefits
BRRR ETF offers three benefits to its holders – accessibility, security, and expertise. All of them are crucial for traders and investors irrespective of their experience in the trading market. Accessibility pertains to the holding of Bitcoin. In the case of a BRRR ETF, shares are directly held by the broker of a trader while allowing them to own it via the ETF. The product is sponsored by a digital asset-focused BRRR ETF investment firm. Thereby offering expertise for BRRR ETF.
Tokens are stored using cold storage of Trust’s Bitcoin. Cold storage helps to prevent hack attacks and malware scams. They can be done in several ways, and all of them go on to converge at a point where users receive all the BRRR ETF benefits.
BRRR ETF Risks and Considerations
There are several risks associated with BRRR ETF. These are market-related risks, volatility, and liquidity risk. Market Risks largely entail how the market is behaving. Bitcoin could lead to a downfall for other tokens that mirror the trend. Or, there could be a massive uptick in ETH’s demand following the approval of Spot Ether ETF. There will be an active scenario for every token as the community wants to make the most of the demand-profit concept, wherein profits can be derived based on demand in the market.
Volatility is a factor that has been associated with cryptos since their first day. Price fluctuations are normal and have been often talked about by experts – citing traders to exercise caution while trading. Bitcoin was once near $74,000 and is now below $64,000. It had even fallen to $60,000. All this has happened in a short time. The range of $64k-$60k was drafted in the last 24 hours.
Concerns of inflation are forcing investors to withhold their investments. Thereby, effective liquidity in the crypto market. A larger selling pressure is likely to fuel that crisis, with everything left to whales to pull the market up.
BRRR ETF Fees and Expenses
The expense ratio is 0.20% for BRRR ETF while the applicable sponsor’s fee is 0.20%. The latter is accrued daily and is charged based on the Bitcoin holdings of the Trust. The expense ratio is an annual fee to make up for several costs including BRRR ETF management fees. Any other fees and expenses, if applicable, are likely to be conveyed to holders in advance or at the time of registration for BRRR ETF.
Conclusion
BRRR ETF is one of the attractive options as an investment. Considering it is directly linked to Bitcoin and Trust holds the token directly, investors rely when it comes to accessibility and security. BRRR ETF fees and expenses are designed to be minimal to bring down additional pressure on the ecosystem. There are BRRR ETF risks associated with it and hence, it is highly recommended to do a thorough research and risk assessment before investing in BRRR ETF, or any other ETF product for that matter.
Cryptos are subject to volatility and so are their ETF-linked products. Prices rarely demonstrate a predicted trend or stable options. Direct funds to BRRR ETF to an extent that it does not hamper traditional or generic investment options.
For further guidance or details on investing in the Valkyrie Bitcoin Fund ETF (BRRR), click here to visit the BRRR support website.
