Alternative asset management firm Valkyrie raised $73.6 million in capital to fund two of its crypto-focused trusts, according to an amended filing with the U.S. Securities and Exchange Commission (SEC).
The new capital adds to Valkyrie’s $1.2 billion assets under management (AUM) at the end of the second quarter.
Tron Trust and Avalanche Trust
The Valkyrie Tron Trust(VTRX) invests exclusively in Tron’s native token, TRX, which is available to accredited investors and offers them exposure to staking options with an additional annualized 3.5 yield through staking.
The fund has now secured a $50 million investment fund, according to an SEC filing on Sept. 15, 2022.
The Valkyrie Avalanche Trust (VAVAX) offers exposure to Avalanche’s native token, AVAX, for a management fee of 2% and a $25,000 minimum investment. The trust has now raised nearly $24 million.
Both trusts are designed to help traditional accredited investors seeking exposure to cryptocurrency, NFTs, decentralized finance (DeFi) projects, decentralized applications (Dapps), and other products on the Tron and Avalanche blockchains.
The two investment vehicles join Valkyrie’s existing single-asset focused trusts on Bitcoin, Algorand, Polkadot, Dash, and Zilliqa.
Expansion to traditional finance and venture capital
Valkyrie is best known as one of the first investment firms to manage three ETFs in the U.S. Most notably, and it won the SEC’s approval to launch its XBTO Bitcoin Futures on May 2, 2022. The other ETFs include Valkyrie Bitcoin Miners ETF and Valkyrie Balance Sheet Opportunities ETF.
In July 2022, the firm announced it is expanding into the venture capital arena with a $30 million fund to support early-stage startups in Israel, according to Coindesk. The firm launched the fund to help behind-the-scenes infrastructure companies to streamline crypto businesses by offering robust security and secure storage.