Valkyrie is applying for Bitcoin ETF

Latest crypto news: the renowned investment company by the name of Valkyrie also recently applied for an ETF on spot Bitcoin, joining other companies such as WisdomTree, Invesco and BlackRock and helping to grow this market. 

The news is also reported by Watcher.Guru‘s official Twitter channel, which states the following: 

Competition is growing in the Bitcoin ETF space: there is now also Valkyrie Investments

In the current race to make Bitcoin ETFs popular, Valkyrie Investments, a Delaware-based investment firm, enters the game by recently submitting an updated proposal for a spot Bitcoin ETF listed on the Nasdaq, with the ticker $BRR. 

This move strengthens the company’s position in the cryptocurrency sector, amidst significantly increased competition in the Bitcoin ETF market. 

Importantly, Valkyrie already has a Nasdaq-listed Bitcoin futures ETF, demonstrating its deep commitment to the cryptocurrency environment. 

Moreover, this move also appears to be a strategic response to recent actions by other financial industry giants, such as BlackRock, the world’s largest asset manager, which has filed for a spot Bitcoin ETF. 

Indeed, BlackRock’s decision to enter this sector suggests a growing interest and acceptance of Bitcoin among institutional investors, a promising sign for the cryptocurrency market. 

Not only that, asset management firm WisdomTree has also submitted an application for a spot Bitcoin ETF, making the market even more competitive.

Other companies such as Bitwise and Invesco have also renewed their applications for spot Bitcoin ETFs, showing an increase in confidence and interest in this type of investment. 

Valkyrie, BlackRock, Bitwise, Invesco, and WisdomTree, among others, are competing for approval for ETFs and are trying to offer investors more affordable and regulated options to participate in the Bitcoin market. 

In conclusion, the moves made by Valkyrie Investments and its competitors indicate an important phase of consolidation and expansion in the Bitcoin spot ETF sector. These developments could point to an even more promising and accessible future in the cryptocurrency space for investors.

Valkyrie’s previous application for a fund based on Bitcoin futures

Already a few weeks ago, Valkyrie submitted a new application for an exchange-traded fund based on Bitcoin futures, which it hopes will be listed on the NASDAQ under the ticker “BTFD.” 

This fund, unlike the firm’s previous BTF fund, will allow speculators to increase their exposure to the major cryptocurrency. Initially, the ticker was planned for the first fund, but was subsequently scheduled in October 2021. 

Valkyrie is thus bringing back one of fintwit’s favorite memes through this new ETF filing: 

“As the space continues to grow stronger and more entrenched within our financial system, we are seeing continued interest from traditional financial traders seeking price and volatility exposure to BTC without directly holding Bitcoin. This traditional financial interest is accompanied by a renewed retail interest in cryptocurrencies due to the recent cracks in the traditional banking system.”

Currently, Bitcoin-based funds offered by Valkyrie do not have direct exposure to Bitcoin itself. Instead, they use Bitcoin futures contracts traded on the Chicago Mercantile Exchange (CME).

Traders who hold these futures contracts, which can cover Bitcoin, gold, or any other asset, effectively enter into an agreement that obligates them to buy or sell the specific asset at a predetermined time, quantity, and price.

Currently, there are four Bitcoin futures-based ETFs available in the market, with the first of these, the ProShares Bitcoin Futures ETF, also launched in October 2021.

There are still no spot Bitcoin ETFs, i.e., funds that offer direct exposure to the main cryptocurrency, as the SEC has rejected all applications for approval submitted so far.

SEC rejects proposed spot Bitcoin ETFs: why? 

As anticipated, the SEC has so far rejected all attempts to approve a Bitcoin spot ETF, citing concerns regarding the possibility of Bitcoin market manipulation.

Currently, digital asset manager Grayscale is involved in a long-term legal battle with the SEC to turn its Grayscale Bitcoin Trust (GBTC) product into a Bitcoin spot ETF. 

Grayscale has criticized the commission’s move to approve ETFs based on futures instead of spot ETFs, calling it “illogical.” 

Indeed, according to Grayscale, there is no reasonable basis for concluding that CME futures market surveillance offers adequate protection for investors in one type of exchange-traded product (ETP) and not the other. 

This was pointed out in a Grayscale memo at the time, which stated, among other things, the following: 

“Yet, the Order is based precisely on this conclusion.”

In March, judges presiding over the dispute between the two parties at the US Court of Appeals for the DC Circuit stated the following: 

“The SEC must clearly explain how it understands the relationship between Bitcoin futures and the spot price of Bitcoin.”