Valkyrie Crypto Trusts Raises Nearly $74M in Funding Amidst Bear Market
An alternative investment firm, Valkyrie, has added $73.6 million in capital to two crypto-focused trust funds. Valkyrie initially had $1.2 billion in assets under management at the end of the second quarter. This information is in amended filings with the United States Securities and Exchange Commission (SEC).
Over the years, crypto investments and decentralized finance have proven to be a good alternative to the traditional financial system. It could be because DeFi has a way of boycotting the bureaucracy of the financial system.
Decentralized finance (DeFi) allows the use of digital ledger technology. Digital technology enables investors to access and control their assets and financial data in global financial transactions.
With DeFi, developers have created financial instruments that can operate digital assets without limitations. Loan collateral and debt obligations can all be tokenized with decentralized finance.
Since blockchain technologies are transparent and accessible, many investors are now channeling their finances into the crypto industry. As a result, traditional finance continues to flow into the crypto industry, even with the bear market.
Details of the Valkyrie Tron Trust
According to reports, the oldest fund was launched in 2021. Valkyrie Tron Trust offers qualified investors access to the TRX cryptocurrency. According to the SEC filings, the trust has raised $50 million from a small sum of $57 in sales in July 2021.
Tron is a blockchain-based decentralized digital platform with its cryptocurrency known as TRX. It aims to host entertainment applications and enable content creators to sell their work directly to consumers.
Tron has become increasingly recognized in the crypto market recently. A spokesperson for Valkyrie noted that investors are taking note of the continuous transaction growth recently recorded by the Tron network.
Valkyrie Avalanche Trust Increased AVAX exposure
Meanwhile, the Valkyrie Avalanche Trust brings exposure to the AVAX token. The trust appeared in an SEC filing in January, but no sale has been recorded. The trust has raised $24 million of the $25 million goal mentioned by Valkyrie in May.
Valkyrie’s spokesperson commented that the adoption rate for Avalanche is increasing significantly. He was referring to KKR’s deal with Securitize to tokenize a private equity fund on the Avalanche blockchain announced earlier this week.
A brief about Valkyrie
Valkyrie is a Tennessee-based investment firm. The company offers trust funds based on eight protocols, three Nasdaq-listed exchange-traded funds (ETFs), decentralized finance (DeFi) and protocol-based financial management.
The SEC approved Valkyries’ XBTO Bitcoin Futures Fund in May. The crypto investment firm announced plans to enter venture capital with a $30 million fund two months after its approval.
The fund’s target is new start-up companies in Israel. Valkyrie’s customer base is mainly from the US and this could help the Israeli teams.
Valkyrie also closed a deal on an $11 million strategic financing round in July. Top traditional financial firms BNY Mellon and Wedbush support the fund.
Featured image from Pixabay, Charts from TradingView.com
