Valkyrie’s Spot Bitcoin ETF under SEC review.
Valkyrie's Spot Bitcoin ETF under SEC review.
The Rise of Bitcoin ETFs: Valkyrie’s Spot Bitcoin ETF Filing Accepted by the SEC
The blockchain industry has been buzzing with excitement as the US Securities and Exchange Commission (SEC) accepted Valkyrie’s application for a spot Bitcoin exchange-traded fund (ETF) and announced an official review. This news comes shortly after the SEC’s acceptance of BlackRock’s ETF application, signaling a potential shift in the regulatory landscape for cryptocurrencies.
Valkyrie’s Initial Spot Bitcoin ETF Filing
Valkyrie, a Nashville-based crypto asset management firm, first filed its application for a Spot Bitcoin ETF in January 2021. The company’s co-founder and CIO, Steven McClurg, expressed optimism about their chances. However, after 11 months, the SEC rejected Valkyrie’s filing along with applications from other firms such as Wisdom Tree, Krypton, and Global X.
The SEC’s rejection of Bitcoin ETF applications has been a recurring theme, with concerns around market manipulation, fraud, and investor protection cited as reasons for the rejections or delays. Despite multiple applications, the SEC has yet to approve any spot Bitcoin ETFs.
Optimism Over the New Filing
In response to BlackRock’s ETF proposal application, Valkyrie resubmitted its Bitcoin ETF application, this time enlisting Coinbase as its surveillance-sharing partner. The new ETF, listed under the ticker ‘BRRR’, will be a leveraged fund, differentiating it from Valkyrie’s existing BTF fund.
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With the application now in the SEC’s docket, there is a 21-day period for public comments on Valkyrie’s proposal. Following this, the SEC will decide whether to approve, reject, or extend its review of the application. It may also request additional information from Valkyrie before finalizing its decision.
If approved, Valkyrie’s Bitcoin ETF would be the first of its kind in the US and could potentially attract significant demand from investors. However, it is important to note that the SEC has historically been cautious and conservative when it comes to crypto-related products, and there is no guarantee of a change in their stance on spot Bitcoin ETFs in the near future.
Impacts on the Market
The news of multiple firms submitting Bitcoin ETF applications has already had a positive impact on the market, with Bitcoin experiencing a rally. However, it is essential to consider the current market conditions. At the time of writing, Bitcoin was hovering around $29,995 according to CoinMarketCap.
The acceptance of Valkyrie’s spot Bitcoin ETF application by the SEC marks a significant development in the blockchain industry. With the potential for the first spot Bitcoin ETF in the US, there is a renewed sense of optimism among investors and enthusiasts alike. However, it remains to be seen whether the SEC will change its stance on spot Bitcoin ETFs, given its cautious approach to crypto-related products. As the industry eagerly awaits the SEC’s decision, the future of Bitcoin ETFs hangs in the balance.
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