Valkyrie Funds, a Tennessee-based asset management firm with a portfolio that includes a Bitcoin futures ETF, a defi fund, and a Bitcoin mining industry ETF, submitted an application to the U.S. Securities and Exchange Commission (SEC) on Wednesday, aiming to launch a spot Bitcoin ETF.
Wave of Spot Bitcoin ETF Applications Hits SEC as Valkyrie Funds Enters the Scene
As several industry participants compete for the SEC’s nod to launch a spot Bitcoin ETF, the race intensifies. This quest was spurred by Blackrock, the planet’s leading asset manager, submitting an application to the SEC to initiate a spot Bitcoin ETF. To this day, the SEC hasn’t sanctioned any spot Bitcoin ETFs, having turned down a number of requests in the past few years. However, firms have been allowed to offer futures-based ETFs, with several, including Valkyrie’s Bitcoin Strategy ETF, making their debut in the final quarter of 2021.
Valkyrie lodged its application for the “Valkyrie Bitcoin Fund”, a spot Bitcoin ETF, with the SEC on June 21, 2023. The proposed ETF, marked under the ticker “BRRR”, is planned to employ the CME Group’s CF Bitcoin Reference Rate. According to Valkyrie’s registration, “The trust aims to list its shares on the Nasdaq stock market.” Interestingly, Bitcoin (BTC) experienced a surge above $30K when Valkyrie’s spot Bitcoin ETF application was filed, following a dip to slightly over $25K in mid-June. This filing occurred just a week following Blackrock’s application.
BTC prices have soared even further since Blackrock’s filing, and both Invesco and Wisdomtree have followed suit with spot Bitcoin ETF applications. Despite current legal battles involving Binance and Coinbase, these investment firms see this as an optimal time to submit applications to the U.S. securities regulator. A surge in spot Bitcoin ETF applications aligns with the debut of EDX, a crypto exchange backed by Charles Schwab, Fidelity Digital Assets, and Citadel Securities, among others.
So far, no spot Bitcoin exchange-traded products have received approval from the U.S. securities regulator. In early 2022, the SEC dismissed Fidelity’s application to list the Fidelity Wise Origin Bitcoin Trust, citing an inability to “prevent fraudulent and manipulative acts” or to “protect investors.” Fidelity countered by asserting the SEC’s focus on “potential manipulation of Bitcoin ETPs” was excessive, maintaining that “manipulation concerns have been adequately addressed.”
Could the approval of a spot Bitcoin ETF be the pivotal moment the market has been eagerly anticipating? We invite you to share your viewpoints and opinions on this topic in the comments section below.
Frequently Asked Questions (FAQs) about Spot Bitcoin ETF
What is Valkyrie Funds applying for?
Valkyrie Funds, an asset management firm based in Tennessee, has applied for the launch of a spot Bitcoin ETF with the U.S. Securities and Exchange Commission (SEC).
Who else has filed for a spot Bitcoin ETF recently?
Along with Valkyrie Funds, Blackrock, Invesco, and Wisdomtree have also recently filed applications for spot Bitcoin ETFs with the SEC.
Have any spot Bitcoin ETFs been approved by the SEC?
As of now, the SEC has not approved any spot Bitcoin ETFs. The commission has rejected several applications over the past few years due to concerns about the potential for fraudulent and manipulative acts.
What has been the market reaction to these filings?
Following the filing of Valkyrie’s spot Bitcoin ETF application, the price of Bitcoin rose above $30,000, after previously dropping to just above $25,000 in mid-June.
What is the significance of a spot Bitcoin ETF approval?
The approval of a spot Bitcoin ETF could be a significant game-changer for the market, potentially paving the way for increased institutional investment in Bitcoin and greater overall market liquidity.
More about Spot Bitcoin ETF
- Valkyrie Funds’ Official Website
- U.S. Securities and Exchange Commission (SEC)
- SEC’s Decision on Previous Bitcoin ETF Applications
- About Bitcoin ETFs
- Latest Bitcoin Price Movement