Bitcoin Spot ETFs Go 'BRRR' - Valkyrie Digital Assets Is Latest to Apply for Spot Bitcoin ETF
Source: Boxmining

Valkyrie, a cryptocurrency fund manager, is again pursuing approval from the US Securities and Exchange Commission (SEC) for a Bitcoin spot exchange-traded fund (ETF).

This move comes in the wake of several other financial firms submitting similar applications in recent times.

Valkyrie made its initial attempt in January 2021, but it faced rejection due to concerns over market manipulation and the lack of regulation in the crypto industry.

Nevertheless, the company remains optimistic and believes that the recent developments in the regulatory landscape are favorable for ETF approval.

Valkyrie Joins the Rush for BTC Spot ETF

The competition for a Bitcoin exchange-traded fund (ETF) in the United States is intensifying again.

Following BlackRock’s recent attempt to introduce the first Bitcoin spot ETF, a wave of financial firms has followed suit.

In light of these developments, Valkyrie has reentered the queue, joining other companies that have submitted applications for crypto-related exchange-traded products to the SEC.

The company submitted an S-1 registration form to the SEC for a Bitcoin spot ETF on June 21st. In the filing, Valkyrie expressed its intention to list the fund on the Nasdaq exchange under the symbol BRRR.

According to Valkyrie’s application, the shares are designed to offer investors a convenient and cost-effective avenue for investing in Bitcoin.

These shares represent fractional units of beneficial interest and ownership in the trust.

The Valkyrie Bitcoin Fund’s objective is to closely track the value of the CME CF Bitcoin Reference Rate – New York Variant (BRRNY).

The price is determined by aggregating trading data from prominent Bitcoin exchanges, including Coinbase, Bitstamp, Gemini, itBit, Kraken, and LMAX Digital.

Compared to its first filing on January 2021, Valkyrie’s updated submission incorporates several changes, including adopting a cleverly named ticker symbol.

While the company previously proposed listing the fund on the NYSE Arca, it is now considering the Nasdaq as the preferred exchange.

ETFs are popular investment tools that allow investors to gain exposure to various assets without direct ownership.

While Bitcoin ETFs have been approved and launched in other countries, the SEC has yet to approve a similar product in the United States.

If granted approval, Valkyrie would have the authority to issue an unrestricted quantity of shares for the fund.

The fund’s price would be adjusted daily between 4:00 and 4:30 p.m. ET, coinciding with the conclusion of daily trading on Wall Street.

However, Valkyrie acknowledges the inherent limitation in acquiring additional Bitcoin due to the network’s maximum cap of 21 million coins.

Valkyrie’s Reapplication: A Sign of Growing Confidence

Valkyrie has established a strong presence in the Bitcoin futures ETF space. In October 2021, the company introduced the Valkyrie Bitcoin Strategy ETF (BTF), its second BTC futures ETF offering.

Furthermore, in December of the same year, Valkyrie launched the Valkyrie Balance Sheet Opportunities (VBB) ETF. However, VBB was later liquidated in October 2022.

Another notable venture is the Valkyrie Bitcoin Miners ETF (WGMI), which oversees companies that generate revenue or profits through Bitcoin mining.

More recently, on May 16th, Valkyrie applied for the Valkyrie Bitcoin Futures Leveraged Strategy ETF (BTFD), a Bitcoin futures ETF.

The upcoming BTFD will follow a similar structure to their proposed Bitcoin ETF, operating as a fund rather than a trust.

Motivated by recent activities among their competitors, Valkyrie has decided to venture back into the BTC spot ETF space.

During a Hashing It Out podcast with Cointelegraph in March, Steven McClurg, the chief investment officer of Valkyrie Investments, shared his perspective.

He expressed his belief that a BTC ETF would likely become viable “in a future administration after the next elections or through legislative action.”

The decision by Valkyrie Digital Assets to refile their Bitcoin ETF proposal with the SEC demonstrates the increasing confidence in the cryptocurrency market.

Market Reaction and Speculation

The announcement of Valkyrie’s reapplication has sparked a wave of optimism and speculation within the cryptocurrency community.

Bitcoin’s price experienced a modest upswing as investors anticipated positive regulatory developments and increased institutional involvement.

Market Reaction and Speculation
Source: Business Insider

The potential approval of a Bitcoin exchange-traded fund carries significant implications for the industry, including increased accessibility, institutional participation, and market maturity.

While the news is exciting, it is important to acknowledge that regulatory concerns and the SEC’s cautious approach may still present obstacles.

Nevertheless, the growing interest from institutional investors and the progress in addressing regulatory concerns indicate that the time may be drawing near for Bitcoin ETF approval.

As the crypto community eagerly awaits the SEC’s decision, the future of Bitcoin and its potential integration into traditional financial markets hang in the balance.

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