Expense Example
|
1
|
Portfolio Holdings Allocation
|
3
|
Schedules of Investments
|
4
|
Statements of Assets and Liabilities
|
8
|
Statements of Operations
|
10
|
Statements of Changes
|
12
|
Financial Highlights
|
14
|
Notes to Financial Statements
|
16
|
Notice to Shareholders
|
38
|
Liquidity Risk Management Program
|
39
|
Valkyrie ETF Trust II
|
||||||||||||||
Expense Example
|
||||||||||||||
March 31, 2023 (Unaudited) (Continued)
|
Beginning
|
Ending
|
Expenses Paid
|
Expense Ratio
|
Total Return
|
||||||||||||||||
Account Value
|
Account Value
|
During Period (1)
|
During Period
|
During Period
|
||||||||||||||||
10/1/22
|
3/31/23
|
10/1/22 - 3/31/23
|
10/1/22 - 3/31/23
|
10/1/22 - 3/31/23
|
||||||||||||||||
Valkyrie Bitcoin Strategy ETF
|
||||||||||||||||||||
Actual (2)
|
$
|
1,000.00
|
$
|
1,494.60
|
$
|
6.03
|
0.97
|
%
|
49.46
|
%
|
||||||||||
Hypothetical (5% return before expenses) (3)
|
$
|
1,000.00
|
$
|
1,020.09
|
$
|
4.89
|
0.97
|
%
|
2.49
|
%
|
||||||||||
Valkyrie Bitcoin Miners ETF
|
||||||||||||||||||||
Actual
|
$
|
1,000.00
|
$
|
1,081.50
|
$
|
3.89
|
0.75
|
%
|
8.15
|
%
|
||||||||||
Hypothetical (5% return before expenses)
|
$
|
1,000.00
|
$
|
1,021.19
|
$
|
3.78
|
0.75
|
%
|
2.49
|
%
|
(1)
|
The expenses are equal to the expense ratio multiplied by the average account value over the period, multipled by 182/365 days
|
||||||||||||
(to reflect the initial period of operations of the Fund). The ending account values in the table are based on the actual total
|
|||||||||||||
return of the shares of the Fund.
|
|||||||||||||
(2)
|
Excluding interest expense, the actual expenses would be $5.91.
|
||||||||||||
(3)
|
Excluding interest expense, the hypothetical expenses would be $4.78.
|
PORTFOLIO HOLDINGS ALLOCATION (as a % of total net assets)
|
|
March 31, 2023 (Unaudited)
|
|
Valkyrie Bitcoin Strategy ETF
|
|
U.S. Treasury Bill
|
58.87%
|
Money Market Fund
|
48.00%
|
Liabilities in Excess of Other Assets
|
(6.87)%
|
Total Net Assets
|
100.00%
|
Valkyrie Bitcoin Miners ETF
|
|
Semiconductors & Semiconductor Equipment
|
6.93%
|
Software
|
90.89%
|
Technology Hardware, Storage & Peripherals
|
1.63%
|
Other Assets in Excess of Liabilities
|
0.55%
|
Total Net Assets
|
100.00%
|
Valkyrie Bitcoin Strategy ETF
|
||||||||
Consolidated Schedule of Investments
|
||||||||
March 31, 2023 (Unaudited)
|
||||||||
PAR/Shares
|
Value
|
|||||||
U.S. TREASURY BILL: 58.87%
|
||||||||
United States Treasury Bill, 4.48%, 5/16/2023 (a)(b)
|
$
|
18,050,000
|
$
|
17,951,041
|
||||
U.S. TREASURY BILL (Cost $17,948,943)
|
17,951,041
|
|||||||
MONEY MARKET FUND: 48.00%
|
||||||||
First American Treasury Obligations Fund - Class X, 4.72% (c)
|
14,635,813
|
14,635,813
|
||||||
TOTAL MONEY MARKET FUND (Cost $14,635,813)
|
14,635,813
|
|||||||
TOTAL INVESTMENTS (Cost $32,584,756): 106.87%
|
32,586,854
|
|||||||
Liabilities in Excess of Other Assets: (6.87)% (d)
|
(2,096,182
|
)
|
||||||
TOTAL NET ASSETS: 100.00%
|
$
|
30,490,672
|
(a)
|
The rate disclosed is the annualized discount rate as of March 31, 2023.
|
||||||
(b)
|
All or a portion of the security has been pledged as collateral in connection with
|
||||||
open reverse repurchase agreements. At March 31, 2023, the value of securities
|
|||||||
pledged amounted to $12,928,734.
|
|||||||
(c)
|
The rate listed is the 7-day annualized yield as of March 31, 2023.
|
||||||
(d)
|
Includes assets and deposits with broker pledged as collateral for
|
||||||
derivative contracts. At March 31, 2023, the value of these assets totals $8,745,036.
|
|||||||
The accompanying notes are an integral part of these financial statements.
|
Valkyrie Bitcoin Strategy ETF
|
|||||||||||
Consolidated Schedule of Open Futures Contracts
|
|||||||||||
March 31, 2023 (Unaudited)
|
|||||||||||
The following futures contracts of the Fund's wholly-owned subsidiary were open at March 31, 2023:
|
Value
|
|||||||||||||
Description
|
Number of Contracts
Purchased
|
Settlement
Month-Year
|
Current
Notional
Amount
|
Unrealized Appreciation
|
Unrealized (Depreciation)
|
||||||||
Purchase Contracts:
|
|||||||||||||
CME Bitcoin Futures
|
212
|
May-23
|
$30,464,400
|
$605,120
|
$(152)
|
|
Valkyrie Bitcoin Strategy ETF
|
||||||||||||
Schedule of Open Reverse Repurchase Agreements
|
||||||||||||
March 31, 2023 (Unaudited)
|
||||||||||||
The following reverse repurchase agreements were open at March 31, 2023:
|
||||||||||||
Counterparty
|
Interest
Rate
|
Trade Date
|
Maturity
Date
|
Net Closing
Amount
|
Face Value
|
|||||||
StoneX Financial Inc.
|
5.25%
|
|
3/31/2023
|
4/3/2023
|
$12,680,545
|
$12,675,000
|
A reverse repurchase agreement, although structured as a sale and repurchase obligation, acts as a financing transaction under
|
||||||||||||
which the Fund will effectively pledge certain assets as collateral to secure a short-term loan. Generally, the other party to the
|
||||||||||||
agreement makes the loan in an amount less than the fair value of the pledged collateral. At the maturity of the reverse
|
||||||||||||
repurchase agreement, the Fund will be required to repay the loan and interest and correspondingly receive back its collateral.
|
||||||||||||
While used as collateral, the pledged assets continue to pay principal and interest which are for the benefit of the Fund.
|
Valkyrie Bitcoin Miners ETF
|
||||||||
Schedule of Investments
|
||||||||
March 31, 2023 (Unaudited)
|
||||||||
Shares
|
Value
|
|||||||
COMMON STOCKS: 99.45%
|
||||||||
Semiconductors & Semiconductor Equipment: 6.93%
|
||||||||
Advanced Micro Devices, Inc. (a)
|
1,230
|
$
|
120,552
|
|||||
Intel Corp.
|
2,000
|
65,340
|
||||||
NVIDIA Corp.
|
658
|
182,773
|
||||||
Taiwan Semiconductor Manufacturing Co., Ltd. - ADR
|
1,032
|
95,997
|
||||||
464,662
|
||||||||
Software: 90.89%
|
||||||||
Applied Digital Corp. (a)
|
44,717
|
100,166
|
||||||
Argo Blockchain PLC - ADR (a)
|
187,503
|
313,130
|
||||||
Bit Digital, Inc. (a)(b)
|
210,038
|
323,458
|
||||||
Bitfarms Ltd. (a)(b)
|
564,906
|
547,959
|
||||||
Cipher Mining, Inc. (a)
|
137,238
|
319,764
|
||||||
Cleanspark, Inc. (a)
|
112,677
|
313,242
|
||||||
Digihost Technology, Inc. (a)(b)
|
191,716
|
318,249
|
||||||
Greenidge Generation Holdings, Inc. (a)
|
369,631
|
167,073
|
||||||
HIVE Blockchain Technologies, Ltd. (a)(b)
|
202,302
|
665,574
|
||||||
Hut 8 Mining Corp. (a)(b)
|
366,635
|
678,275
|
||||||
Iris Energy, Ltd. (a)(b)
|
102,602
|
313,962
|
||||||
Marathon Digital Holdings, Inc. (a)
|
81,193
|
708,003
|
||||||
Mawson Infrastructure Group, Inc. (a)
|
85,526
|
265,131
|
||||||
Riot Platforms, Inc. (a)
|
69,475
|
694,055
|
||||||
Stronghold Digital Mining, Inc. - Class A (a)
|
260,499
|
161,509
|
||||||
Terawulf, Inc. (a)
|
218,941
|
205,323
|
||||||
6,094,873
|
||||||||
Technology Hardware, Storage & Peripherals: 1.63%
|
||||||||
Samsung Electronics Co, Ltd. - GDR
|
89
|
109,336
|
||||||
TOTAL COMMON STOCKS (Cost $7,822,304)
|
6,668,871
|
|||||||
TOTAL INVESTMENTS (Cost $7,822,304): 99.45%
|
6,668,871
|
|||||||
Other Assets in Excess of Liabilities: 0.55%
|
36,779
|
|||||||
TOTAL NET ASSETS: 100.00%
|
$
|
6,705,650
|
ADR
|
American Depository Receipt
|
|||||
GDR
|
Global Depository Receipt
|
|||||
PLC
|
Public Limited Company
|
|||||
(a)
|
Non-income producing security.
|
|||||
(b)
|
Foreign issued security.
|
The Global Industry Classification Standard (GICS®) was developed by and/or is the exclusive property of MSCI, Inc.
|
|||||
and Standard & Poor's Financial Services, LLC (“S&P”). GICS is a service mark of MSCI and S&P and has been licensed for
|
|||||
use by U.S. Bancorp Fund Services, LLC.
|
|||||
The accompanying notes are an integral part of these financial statements.
|
VALKYRIE ETF TRUST II
|
||||
Consolidated Statement of Assets and Liabilities
|
||||
March 31, 2023 (Unaudited)
|
||||
VALKYRIE
|
||||
BITCOIN
|
||||
STRATEGY
|
||||
ETF
|
||||
ASSETS:
|
||||
Investments in securities, at value (cost $32,584,756)
|
$
|
32,586,854
|
||
Cash
|
8,936
|
|||
Deposits with broker for derivative instruments
|
8,745,036
|
|||
Receivables:
|
||||
Interest
|
2,455
|
|||
Fund shares sold
|
1,333,930
|
|||
Variation margin on futures contracts
|
530,248
|
|||
ETF Variable fee
|
112
|
|||
Total assets
|
43,207,571
|
|||
LIABILITIES:
|
||||
Payables:
|
||||
Reverse repurchase agreement
|
12,675,000
|
|||
Interest for reverse repurchase agreement
|
1,848
|
|||
Management fees
|
40,051
|
|||
Total liabilities
|
12,716,899
|
|||
NET ASSETS
|
$
|
30,490,672
|
||
NET ASSETS CONSIST OF:
|
||||
Paid-in capital
|
$
|
20,359,743
|
||
Total distributable earnings
|
10,130,929
|
|||
Net assets
|
$
|
30,490,672
|
||
CALCULATION OF NET ASSET VALUE PER SHARE:
|
||||
Net assets
|
$
|
30,490,672
|
||
Shares outstanding (unlimited number of shares authorized, no par value)
|
2,725,000
|
|||
Net asset value per share
|
$
|
11.19
|
||
The accompanying notes are an integral part of these financial statements.
|
VALKYRIE ETF TRUST II
|
||||
Statements of Assets and Liabilities
|
||||
March 31, 2023 (Unaudited)
|
||||
VALKYRIE
|
||||
BITCOIN
|
||||
MINERS
|
||||
ETF
|
||||
ASSETS:
|
||||
Investments in securities, at value (cost $7,822,304)
|
$
|
6,668,871
|
||
Cash
|
8,274
|
|||
Receivables:
|
||||
Fund shares sold
|
656,873
|
|||
Securities sold
|
455,640
|
|||
Dividends
|
390
|
|||
Total assets
|
7,790,048
|
|||
LIABILITIES:
|
||||
Payables:
|
||||
Securities purchased
|
1,078,074
|
|||
Management fees
|
6,324
|
|||
Total liabilities
|
1,084,398
|
|||
NET ASSETS
|
$
|
6,705,650
|
||
NET ASSETS CONSIST OF:
|
||||
Paid-in capital
|
$
|
12,187,946
|
||
Total accumulated deficit
|
(5,482,296
|
)
|
||
Net assets
|
$
|
6,705,650
|
||
CALCULATION OF NET ASSET VALUE PER SHARE:
|
||||
Net assets
|
$
|
6,705,650
|
||
Shares outstanding (unlimited number of shares authorized, no par value)
|
725,000
|
|||
Net asset value per share
|
$
|
9.25
|
||
The accompanying notes are an integral part of these financial statements.
|
VALKYRIE ETF TRUST II
|
||||
Consolidated Statement of Operations
|
||||
For the six months ended March 31, 2023 (Unaudited)
|
||||
VALKYRIE
|
||||
BITCOIN
|
||||
STRATEGY
|
||||
ETF
|
||||
INVESTMENT INCOME:
|
||||
Interest
|
$
|
279,864
|
||
Total investment income
|
279,864
|
|||
EXPENSES:
|
||||
Management fees
|
106,419
|
|||
Total operating expenses
|
106,419
|
|||
Interest expense on reverse repurchase agreements
|
1,850
|
|||
Total expenses
|
108,269
|
|||
NET INVESTMENT INCOME
|
171,595
|
|||
REALIZED AND UNREALIZED GAIN/(LOSS) ON INVESTMENTS AND FUTURES CONTRACTS:
|
||||
Net realized gain/(loss) on transactions from:
|
||||
Investments
|
(6,510
|
)
|
||
Futures contracts
|
9,497,726
|
|||
Net change in unrealized appreciation/(depreciation) on:
|
||||
Investments
|
9,978
|
|||
Futures contracts
|
510,153
|
|||
Net gain on investments and futures contracts
|
10,011,347
|
|||
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS
|
$
|
10,182,942
|
||
The accompanying notes are an integral part of these financial statements.
|
VALKYRIE ETF TRUST II
|
||||
Statements of Operations
|
||||
For the six months ended March 31, 2023 (Unaudited)
|
||||
VALKYRIE
|
||||
BITCOIN
|
||||
MINERS
|
||||
ETF
|
||||
INVESTMENT INCOME:
|
||||
Dividends (net of foreign taxes withheld and issuance fees of $2,017)
|
$
|
1,764
|
||
Total investment income
|
1,764
|
|||
EXPENSES:
|
||||
Management fees
|
11,878
|
|||
Total expenses
|
11,878
|
|||
NET INVESTMENT LOSS
|
(10,114
|
)
|
||
REALIZED AND UNREALIZED GAIN/(LOSS) ON INVESTMENTS:
|
||||
Net realized loss on transactions from:
|
||||
Investments
|
(2,913,601
|
)
|
||
Foreign currency
|
(521
|
)
|
||
Net change in unrealized appreciation/(depreciation) on:
|
||||
Investments
|
3,163,841
|
|||
Foreign currency
|
522
|
|||
Net gain on investments
|
250,241
|
|||
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS
|
$
|
240,127
|
||
The accompanying notes are an integral part of these financial statements.
|
Valkyrie Bitcoin Strategy ETF
|
|||||||||
Consolidated Statements of Changes in Net Assets
|
|||||||||
For the period
|
|||||||||
Six Months Ended
|
October 21, 2021(1)
|
||||||||
March 31, 2023
|
through
|
||||||||
(Unaudited)
|
September 30, 2022
|
||||||||
INCREASE/(DECREASE) IN NET ASSETS FROM:
|
|||||||||
OPERATIONS:
|
|||||||||
Net investment income/(loss)
|
$
|
171,595
|
$
|
(223,540
|
)
|
||||
Net realized gain/(loss) from:
|
|||||||||
Investments
|
(6,510
|
)
|
(8,427
|
)
|
|||||
Futures contracts
|
9,497,726
|
(40,287,314
|
)
|
||||||
Change in unrealized appreciation/(depreciation):
|
|||||||||
Investments
|
9,978
|
(7,880
|
)
|
||||||
Futures contracts
|
510,153
|
95,256
|
|||||||
Net increase/(decrease) in net assets resulting from operations
|
10,182,942
|
(40,431,905
|
)
|
||||||
CAPITAL SHARE TRANSACTIONS:
|
|||||||||
Proceeds from shares sold
|
6,856,265
|
121,405,778
|
|||||||
Payments for shares redeemed
|
(7,325,413
|
)
|
(60,216,075
|
)
|
|||||
Transaction fees (See Note 1)
|
1,418
|
17,662
|
|||||||
Net increase/(decrease) in net assets derived from capital share transactions
|
(467,730
|
)
|
61,207,365
|
||||||
TOTAL INCREASE IN NET ASSETS
|
9,715,212
|
20,775,460
|
|||||||
NET ASSETS:
|
|||||||||
Beginning of period
|
20,775,460
|
-
|
|||||||
End of period
|
$
|
30,490,672
|
$
|
20,775,460
|
|||||
CHANGES IN SHARES OUTSTANDING:
|
|||||||||
Shares sold
|
750,000
|
6,450,000
|
|||||||
Shares redeemed
|
(800,000
|
)
|
(3,675,000
|
)
|
|||||
Net increase/(decrease) in shares outstanding
|
(50,000
|
)
|
2,775,000
|
(1)
|
Commencement of operations.
|
The accompanying notes are an integral part of these financial statements.
|
Valkyrie Bitcoin Miners ETF
|
||||||||
Statements of Changes in Net Assets
|
||||||||
For the period
|
||||||||
Six Months Ended
|
February 7, 2022(1)
|
|||||||
March 31, 2023
|
through
|
|||||||
(Unaudited)
|
September 30, 2022
|
|||||||
INCREASE/(DECREASE) IN NET ASSETS FROM:
|
||||||||
OPERATIONS:
|
||||||||
Net investment loss
|
$
|
(10,114
|
)
|
$
|
(16,280
|
)
|
||
Net realized loss on:
|
||||||||
Investments
|
(2,913,601
|
)
|
(950,545
|
)
|
||||
Foreign currency
|
(521
|
)
|
(71
|
)
|
||||
Net change in unrealized appreciation/(depreciation) on:
|
||||||||
Investments
|
3,163,841
|
(4,317,274
|
)
|
|||||
Foreign currency
|
522
|
(522
|
)
|
|||||
Net increase/(decrease) in net assets resulting from operations
|
240,127
|
(5,284,692
|
)
|
|||||
CAPITAL SHARE TRANSACTIONS:
|
||||||||
Proceeds from shares sold
|
3,686,085
|
9,502,913
|
||||||
Payments for shares redeemed
|
-
|
(1,438,783
|
)
|
|||||
Net increase in net assets derived from capital share transactions
|
3,686,085
|
8,064,130
|
||||||
TOTAL INCREASE IN NET ASSETS
|
3,926,212
|
2,779,438
|
||||||
NET ASSETS:
|
||||||||
Beginning of period
|
2,779,438
|
-
|
||||||
End of period
|
$
|
6,705,650
|
$
|
2,779,438
|
||||
CHANGES IN SHARES OUTSTANDING:
|
||||||||
Shares sold
|
400,000
|
400,000
|
||||||
Shares redeemed
|
-
|
(75,000
|
)
|
|||||
Net increase in shares outstanding
|
400,000
|
325,000
|
(1)
|
Commencement of operations.
|
The accompanying notes are an integral part of these financial statements.
|
Valkyrie Bitcoin Strategy ETF
|
||||||||||
Consolidated Financial Highlights
|
||||||||||
For a share outstanding throughout each period
|
||||||||||
For the Period
|
||||||||||
Six Months Ended
|
October 21, 2021(1)
|
|||||||||
March 31, 2023
|
through
|
|||||||||
(Unaudited)
|
September 30, 2022
|
|||||||||
PER SHARE DATA:
|
||||||||||
Net asset value, beginning of period
|
$
|
7.49
|
$
|
25.00
|
||||||
Income from investment operations:
|
||||||||||
Net investment income/(loss) (2)
|
0.06
|
(0.09
|
)
|
|||||||
Net realized and unrealized gain/(loss) on investments and futures contracts
|
3.64
|
(17.42
|
)
|
|||||||
Total from investment operations
|
3.70
|
(17.51
|
)
|
|||||||
Net asset value, end of period
|
$
|
11.19
|
$
|
7.49
|
||||||
TOTAL RETURN, at NAV
|
49.46
|
%
|
(3)
|
-70.05
|
%
|
(3)
|
||||
TOTAL RETURN, at Market
|
49.40
|
%
|
(3)
|
-70.04
|
%
|
(3)
|
||||
SUPPLEMENTAL DATA AND RATIOS:
|
||||||||||
Net assets, end of period (thousands)
|
$
|
30,491
|
$
|
20,775
|
||||||
Ratio of expenses to average net assets
|
0.97
|
%
|
(4)(6)
|
0.95
|
%
|
(4)
|
||||
Ratio of net investment income/(loss) to average net assets
|
1.53
|
%
|
(4)
|
(0.68
|
)%
|
(4)
|
||||
Portfolio turnover rate(5)
|
0
|
%
|
(3)
|
0
|
%
|
(3)
|
(1)
|
Commencement of operations.
|
|||||
(2)
|
Based on average shares outstanding.
|
|||||
(3)
|
Not annualized.
|
|||||
(4)
|
Annualized.
|
|||||
(5)
|
Excludes impact of derivative instruments.
|
|||||
(6)
|
Includes interest expense of 0.02%.
|
The accompanying notes are an integral part of these financial statements.
|
Valkyrie Bitcoin Miners ETF
|
||||||||||
Financial Highlights
|
||||||||||
For a share outstanding throughout each period
|
||||||||||
For the Period
|
||||||||||
Six Months Ended
|
February 7, 2022(1)
|
|||||||||
March 31, 2023
|
through
|
|||||||||
(Unaudited)
|
September 30, 2022
|
|||||||||
PER SHARE DATA:
|
||||||||||
Net asset value, beginning of period
|
$
|
8.55
|
$
|
26.18
|
||||||
Income from investment operations:
|
||||||||||
Net investment loss (2)
|
(0.02
|
)
|
(0.06
|
)
|
||||||
Net realized and unrealized gain/(loss) on investments
|
0.72
|
(17.57
|
)
|
|||||||
Total from investment operations
|
0.70
|
(17.63
|
)
|
|||||||
Net asset value, end of period
|
$
|
9.25
|
$
|
8.55
|
||||||
TOTAL RETURN, at NAV
|
8.15
|
%
|
(3)
|
-67.33
|
%
|
(3)
|
||||
TOTAL RETURN, at Market
|
8.63
|
%
|
(3)
|
-67.27
|
%
|
(3)
|
||||
SUPPLEMENTAL DATA AND RATIOS:
|
||||||||||
Net assets, end of period (thousands)
|
$
|
6,706
|
$
|
2,779
|
||||||
Ratio of expenses to average net assets
|
0.75
|
%
|
(4)
|
0.75
|
%
|
(4)
|
||||
Ratio of net investment loss to average net assets
|
(0.64
|
)%
|
(4)
|
(0.57
|
)%
|
(4)
|
||||
Portfolio turnover rate(5)
|
45
|
%
|
(3)
|
37
|
%
|
(3)
|
(1)
|
Commencement of operations.
|
||||||
(2)
|
Based on average shares outstanding.
|
||||||
(3)
|
Not annualized.
|
||||||
(4)
|
Annualized.
|
||||||
(5)
|
Excludes impact of in-kind transactions.
|
The accompanying notes are an integral part of these financial statements.
|
Bitcoin Strategy ETF
|
||||||||||||||||
Level 1
|
Level 2
|
Level 3
|
Total
|
|||||||||||||
Fixed Income
|
||||||||||||||||
U.S. Treasury Bill
|
$
|
-
|
$
|
17,951,041
|
$
|
-
|
$
|
17,951,041
|
||||||||
Money Market Fund
|
||||||||||||||||
Money Market Fund
|
14,635,813
|
-
|
-
|
14,635,813
|
||||||||||||
Total Investments in Securities
|
$
|
14,635,813
|
$
|
17,951,041
|
$
|
-
|
$
|
32,586,854
|
||||||||
|
||||||||||||||||
Other Financial Instruments*
|
||||||||||||||||
Assets
|
||||||||||||||||
Futures Contracts
|
||||||||||||||||
Long
|
$
|
604,968
|
$
|
-
|
$
|
-
|
$
|
604,968
|
||||||||
Liabilities
|
||||||||||||||||
Reverse Repurchase Agreement
|
-
|
(12,675,000
|
)
|
-
|
(12,675,000
|
)
|
||||||||||
Total Other Financial Instruments
|
$
|
604,968
|
$
|
(12,675,000
|
)
|
$
|
-
|
$
|
(12,070,032
|
)
|
Bitcoin Miners ETF
|
Level 1
|
Level 2
|
Level 3
|
Total
|
|||||||||||||
Total Common Stocks
|
$
|
6,668,871
|
$
|
-
|
$
|
-
|
$
|
6,668,871
|
||||||||
Total Investments in Securities
|
$
|
6,668,871
|
$
|
-
|
$
|
-
|
$
|
6,668,871
|
Asset Derivatives
|
|||||||||
Derivative
Instrument
|
Risk
Exposure
|
Consolidated Statement of
Assets and Liabilities Location
|
Value
|
||||||
Futures contracts
|
Commodity risk
|
Unrealized appreciation on futures contracts*
|
$605,120
|
||||||
Futures contracts
|
Commodity risk
|
Unrealized depreciation on futures contracts*
|
(152)
|
Net realized gain on futures contracts
|
$9,497,726
|
Net change in unrealized appreciation on futures contracts
|
510,153
|
Counterparty
|
Borrowing
Rate
|
Borrowing
Date
|
Maturity
Date
|
Net Closing
Amount
|
Amount
Borrowed
|
||||||
StoneX Financial Inc.
|
5.25%
|
|
3/31/2023
|
4/3/2023
|
$12,680,545
|
$12,675,000
|
Reverse Repurchase
Agreements
|
Overnight
and
Continuous
|
Up to 30
Days
|
30 – 90
Days
|
Greater
Than 90
Days
|
Total
|
||||||
U.S. Treasury Bills
|
$-
|
$12,928,734
|
$-
|
$-
|
$12,928,734
|
Collateral
|
||||||||||||||||||
|
Gross
Amounts of
Recognized
Liabilities |
Gross Amounts
Offset in
Consolidated
Statement of
Assets and
Liabilities
|
Net Amounts
of Liabilities
Presented in
Consolidated
Statement of
Assets and
Liabilities
|
Non-Cash
Collateral
(Pledged)
Received*
|
Cash
Collateral
Pledged
(Received)*
|
Net
Amount
|
||||||||||||
Reverse
Repurchase
Agreements
|
$12,675,000
|
$–
|
$12,675,000
|
$(12,675,000)
|
|
$–
|
$–
|
|||||||||||
*Excess of collateral pledged to the individual counterparty is not shown for financial statement purposes.
|
Purchases
|
Sales
|
|||||||
Bitcoin Strategy ETF
|
-
|
-
|
||||||
Bitcoin Miners ETF
|
$
|
1,523,914
|
$
|
1,518,727
|
Purchases
|
Sales
|
|||||||
Bitcoin Strategy ETF
|
-
|
-
|
||||||
Bitcoin Miners ETF
|
$
|
3,636,856
|
-
|
Realized
Gains
|
Realized
Losses
|
|||||||
Bitcoin Strategy ETF
|
$
|
-
|
$
|
-
|
||||
Bitcoin Miners ETF
|
-
|
-
|
Bitcoin
Strategy
ETF
|
Bitcoin
Miner
ETF
|
|||||||
Cost of investments (a)
|
$
|
11,467,673
|
$
|
7,536,271
|
||||
Gross unrealized appreciation
|
408,444
|
35,697
|
||||||
Gross unrealized depreciation
|
(416,324
|
)
|
(4,795,898
|
)
|
||||
Net unrealized depreciation
|
(7,880
|
)
|
(4,760,201
|
)
|
||||
Other accumulated loss
|
(44,133
|
)
|
(962,222
|
)
|
||||
Total accumulated loss
|
$
|
(52,013
|
)
|
$
|
(5,722,423
|
)
|
(a)
|
The Bitcoin Strategy ETF book-basis and tax-basis cost is the same. The difference between the book-basis and tax-basis cost is attributable to wash sales in the Bitcoin Miners ETF.
|
Short-Term
|
Long-Term
|
|||||||
Bitcoin Strategy ETF
|
$
|
8,427
|
$
|
-
|
||||
Bitcoin Miners ETF
|
945,881
|
-
|
Investment Adviser
|
|||||||
Valkyrie Funds LLC
|
|||||||
320 Seven Springs Way, Suite 250
|
|||||||
Nashville, TN 37027
|
|||||||
Investment Sub-Adviser
|
|||||||
Vident Investment Advisory, LLC
|
|||||||
1125 Sanctuary Parkway, Suite 515
|
|||||||
Alpharetta, GA 30009
|
|||||||
Custodian
|
|||||||
U.S. Bank N.A.
|
|||||||
1555 N. RiverCenter Drive, Suite 302
|
|||||||
Milwaukee, WI 53212
|
|||||||
Fund Accountant, Fund Administrator and Transfer Agent
|
|||||||
U.S. Bank Global Fund Services
|
|||||||
615 East Michigan Street
|
|||||||
Milwaukee, WI 53202
|
|||||||
Distributor
|
|||||||
ALPS Distributors, Inc.
|
|||||||
1290 Broadway, Suite 1000
|
|||||||
Denver, CO 80203
|
|||||||
Independent Registered
|
|||||||
Public Accounting Firm
|
|||||||
Cohen & Company, Ltd.
|
|||||||
342 North Water Street, Suite 830
|
|||||||
Milwaukee, WI 53202
|
|||||||
Legal Counsel
|
|||||||
Chapman and Cutler LLP
|
|||||||
111 West Monroe Street
|
|||||||
Chicago, IL 60603
|
|||||||
This report is intended for the shareholders of the Funds and may not be used
|
|||||||
as sales literature unless preceded or accompanied by a current prospectus.
|
|||||||
To obtain a free prospectus, please call 1-800-617-0004.
|
(a)
|
The registrant is an issuer as defined in Rule 10A-3 under the Securities Exchange Act of 1934, (the “Act”) and has a separately-designated standing audit committee established in accordance with Section 3(a)(58)(A) of the Act. The
independent members of the committee are as follows: Keith Fletcher, Steven Lehman, and Mark Osterheld.
|
(b)
|
Not Applicable.
|
(a)
|
Schedule of Investments is included as part of the report to shareholders filed under Item 1 of this Form.
|
(b)
|
Not Applicable.
|
(a)
|
The Registrant’s President/Chief Executive Officer/Principal Executive Officer and Treasurer/Chief Financial Officer/Chief Accounting Officer/Principal Financial
Officer have reviewed the Registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended, (the “Act”)) as of a date within 90 days of the filing of this report, as
required by Rule 30a-3(b) under the Act and Rules 13a-15(b) or 15d‑15(b) under the Securities Exchange Act of 1934. Based on their review, such officers have concluded that the disclosure controls and procedures are effective in ensuring
that information required to be disclosed in this report is appropriately recorded, processed, summarized and reported and made known to them by others within the Registrant and by the Registrant’s service provider.
|
(b)
|
There were no changes in the Registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the Act) that occurred during the period
covered by this report that has materially affected, or is reasonably likely to materially affect, the Registrant's internal control over financial reporting.
|
(a)
|
(1) Any code of ethics or amendment thereto, that is the subject of the disclosure required by Item 2, to the extent that the registrant intends to satisfy Item 2 requirements through filing an
exhibit. Not applicable.
|
1.
|
I have reviewed this report on Form N-CSR of Valkyrie ETF Trust II;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made,
not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if
the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over
financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated
subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting
and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the
filing date of this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the
registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer(s) and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and
report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Date: 6/6/23
|
/s/ Nick Bonos
Nick Bonos President/Chief Executive Officer/Principal Executive Officer |
1.
|
I have reviewed this report on Form N-CSR of Valkyrie ETF Trust II;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made,
not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if
the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over
financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated
subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting
and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the
filing date of this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the
registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer(s) and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and
report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Date: 6/6/23
|
/s/ Benjamin Gaffey
Benjamin Gaffey
Treasurer/Chief Financial Officer/Chief Accounting Officer/Principal Financial Officer
|
/s/ Nick Bonos
Nick Bonos
President/Chief Executive Officer/Principal Executive Officer, Valkyrie ETF Trust II
|
/s/ Benjamin Gaffey
Benjamin Gaffey
Treasurer/Chief Financial Officer/Chief Accounting Officer/Principal Financial Officer, Valkyrie ETF Trust II
|
Dated: 6/6/23
|
Dated: 6/6/23
|