Tennessee-based asset manager, Valkyrie Funds, has filed for approval of a Bitcoin exchange-traded fund (ETF) with the U.S. Securities and Exchange Commission (SEC). Valkyrie Investments, which already has a Bitcoin futures ETF product listed on Nasdaq, filed the application for a spot Bitcoin ETF recently. It joins a growing list of companies seeking approval for such a product to offer to investors.
An amended spot ETF proposal for $BRRR as the ticker and Nasdaq as the proposed exchange has been submitted by a Delaware-based subsidiary of Valkyrie Investments Inc. As a result, Valkyrie Investments has taken substantial steps to re-establish its presence in the midst of a flurry of activity in the ETF market.
BlackRock’s Application for Bitcoin ETF
BlackRock, the largest asset manager globally, submitted an application for a spot Bitcoin ETF to take advantage of the current regulatory scrutiny to expedite its market launch. Valkyrie, which has been closely following market developments with a focus on other companies entering the ETF market, is likely to have taken note of this move.
The Valkyrie Bitcoin Fund
The Valkyrie Bitcoin Fund seeks to offer investors a cheap and practical way to invest in Bitcoin. The application states that the New York-based CME CF Bitcoin Reference Rate Variant (the “Index”) serves as the benchmark for the Fund’s investment strategy.
Other Companies’ Applications for Bitcoin ETF
Invesco and WisdomTree are among other companies that have submitted applications for spot Bitcoin ETFs. Despite ongoing lawsuits against Binance and Coinbase, these investment firms appear to believe that it is the perfect time to file their applications with the SEC.
The SEC has yet to approve any spot Bitcoin ETFs, despite numerous requests being denied in recent years. The first futures-based ETFs, such as Valkyrie’s Bitcoin Strategy ETF, were introduced in the fourth quarter of 2021, and companies can market these products.
After Valkyrie submitted its application, Bitcoin (BTC) surged above $30K, having dropped to just under $25K in mid-June. This comes only a week after BlackRock made its submission to the SEC. The launch of EDX, a cryptocurrency exchange supported by Charles Schwab, Fidelity Digital Assets, and Citadel Securities, among others, aligns with the rise in spot Bitcoin ETFs.
Valkyrie Funds’ submission of an application for a Bitcoin ETF with the SEC comes amidst a flurry of activity in the ETF market, with BlackRock and other companies filing similar applications. The Valkyrie Bitcoin Fund seeks to provide investors with a cost-effective and practical way to invest in Bitcoin, with the New York-based CME CF Bitcoin Reference Rate Variant serving as the benchmark for the Fund’s investment strategy. Despite the SEC’s previous rejections of such requests, investment firms are optimistic about the timing of their applications.