End of Year Letter to Investors

Dear Investors,

We know that these are challenging times for the digital asset industry. That’s why we want to take this opportunity to reaffirm our commitment to you and to our company’s mission, vision and values.

Mission

Our mission is to provide professional and reliable digital asset management services to individuals and institutions who share our belief in the transformative power of blockchain and decentralized technologies.

Valkyrie was born out of a desire to provide all investors with access to digital assets, starting with Bitcoin, through safe, institutional friendly products. We raised our seed round in order to create a simple product that did not exist in the market: a trust that holds Bitcoin and trades close to net asset value. We strive to be at the forefront of the industry through our dedication to innovation and by advocating for the compliance and regulation necessary for these technologies to survive and thrive. We are committed to expanding access and adoption of digital assets by building a bridge to the traditional finance world while upholding the highest standards of transparency and ethical conduct.

Bitcoin was conceived as a globally accessible financial asset, in part, as a response to the fallout from the 2008 financial crisis and the unchecked risks taken by global banks that crippled the financial system. Unlike every other financial tool for sending money over the internet, Bitcoin removes the need for an intermediary for financial transactions, potentially freeing individuals from the risks of past crises. Unfortunately, despite this laudable initial purpose, the digital asset ecosystem remains relatively unregulated and is rife with fraud, scams, speculation and risk, all of which pose significant barriers to global acceptance and adoption of this innovative technology. All investors deserve a way to safely invest in digital assets with a regulated, trusted, professional, investment manager that understands and embraces the technology.

Vision

Our vision is to be the leading digital asset manager, known for our innovation, integrity, and transparency. We are constantly seeking out new opportunities to create value for our investors, build powerful infrastructure technology, and stay ahead of the curve in the fast-changing digital asset industry.

Values

Our values are at the heart of everything we do. We believe in acting with honesty and integrity, and in treating all of our stakeholders with respect and fairness. We are also committed to education and to helping our investors understand the complexities of the digital asset market. To this end, we offer regular educational resources and webinars to help our investors stay informed and make informed investment decisions. Our educational outreach also extends to regulators and legislators – we spearheaded DAO LLC legislation in Tennessee in 2022 and are currently engaged in a push for clarity and standards around custody for digital assets.

Core to our values, we are committed to pursuing activism when necessary to ensure our burgeoning industry grows safely and with integrity towards all stakeholders in the space, including investors.

The Valkyrie

The name “Valkyrie” is derived from Norse mythology, where Valkyries were warrior women who chose which soldiers would live and die on the battlefield. This powerful image of choice and decision-making aligns with our mission at Valkyrie to provide professional and reliable digital asset management services to our clients.

At Valkyrie, we believe that, just as Valkyries had the power to shape the outcome of battles, we have the ability to make informed and strategic decisions on behalf of our clients that can impact their financial success and steward in a new age of compliance, regulation and risk management in the digital asset ecosystem. Our team is composed of experienced professionals who are dedicated to using their expertise to carefully evaluate all potential market risks and appropriately manage our funds.

Compliance

We are proud to report that we were not exposed to any market contagion this year, including Terra/Luna, Three Arrows Capital, Voyager, Celsius, Blockfi, FTX, Genesis nor GeminiEarn. This is a testament to the strength of our risk management and compliance controls, as well as our deep understanding of the digital asset ecosystem.

We understand that the failures of several firms in the industry this year, including the potential criminality surrounding FTX, have raised concerns about compliance and risk management in the industry. At Valkyrie, we believe that our traditional finance experience in compliance and risk management is a major advantage in the market. We have applied this expertise to carefully evaluate potential service providers and counterparties and to implement robust risk management controls to identify and mitigate risks to our operations and our clients’ assets. Through the oversight of our compliance team, we ensure our operations are in line with all relevant laws, regulations, and best practices applicable to registered investment advisors.

Onward & Upward

We understand that these are challenging times, but we believe that they are also filled with opportunity. We are confident in our ability to navigate the current market conditions and to generate strong returns for our clients and investors over the long term. We believe that by serving our mission, we will continue to build trust and confidence in our company and our industry. Admittedly it’s been a rough year but we’re fighting everyday and will never stop doing so.

We hope that this letter helps to reassure you of our commitment to you and to our mission, vision, and values. If you have any questions or concerns, please don’t hesitate to reach out.

Happy Holidays!

With respect and gratitude,

Leah