Valkyrie’s Bitcoin ETF added to SEC’s Nasdaq rulemaking list

Valkyrie's Bitcoin ETF added to SEC's Nasdaq rulemaking list

The SEC Accepts Valkyrie’s Bitcoin ETF Proposal for Official Review

The blockchain industry has been buzzing with excitement as the United States’ Securities and Exchange Commission (SEC) has accepted Valkyrie’s Bitcoin (BTC) exchange-traded fund (ETF) proposal for official review. This development marks a significant step forward for the cryptocurrency market and could potentially pave the way for more mainstream adoption of Bitcoin.

Valkyrie’s proposal for its spot Bitcoin ETF entered the official docket on July 17, according to data from the SEC’s Nasdaq rulemaking list. This is the second spot Bitcoin ETF proposal being considered by the SEC, following BlackRock’s proposal on July 13. The acceptance of these proposals indicates a growing interest in offering investors regulated access to Bitcoin through traditional financial channels.

The filing by Valkyrie is not their first attempt to launch a spot Bitcoin ETF in the United States. In January 2021, the family investment fund proposed listing the Valkyrie Bitcoin Trust on the New York Stock Exchange. However, due to regulatory pushback from the SEC, Valkyrie was unable to proceed with their initial plan. Nevertheless, they managed to launch a futures-based Bitcoin ETF in October 2021.

In July 2023, Nasdaq refiled for a proposed rule change allowing the listing of a spot Bitcoin ETF by Valkyrie. This move demonstrates the continued efforts by market participants to gain approval for Bitcoin ETFs, which would offer investors a convenient and regulated way to gain exposure to the cryptocurrency.

The SEC’s decision to accept Valkyrie’s proposal sets in motion a series of steps before the ETF can be officially approved or disapproved. The public now has the opportunity to submit feedback on the proposal during a 21-day comment period, which ends on August 7. After this period, the SEC has up to 45 days, or potentially longer, to review and make a decision on the rule change.

In the statement accompanying the notice, SEC deputy secretary Matthew DeLesDernier outlined the nature of Valkyrie’s proposed Bitcoin ETF. He mentioned that the trust would only hold Bitcoin and would issue baskets in exchange for deposits of Bitcoins. Furthermore, the trust would distribute Bitcoins in connection with redemptions of baskets. This structure aligns with the goal of providing investors with a secure and regulated way to invest in Bitcoin.

The renewed optimism surrounding spot Bitcoin ETFs can be attributed to the actions of industry leaders like BlackRock. On June 29, BlackRock refilled their proposal for a spot BTC ETF, reigniting hopes for the approval of such products. ARK Investment Management also filed an application for a spot Bitcoin ETF in April, marking their third attempt to secure approval from the SEC.

The acceptance of Valkyrie’s Bitcoin ETF proposal by the SEC is a significant development for the blockchain industry. It demonstrates a growing recognition of Bitcoin’s potential as an investment asset and the increasing demand for regulated investment vehicles in the cryptocurrency market. If approved, the Valkyrie Bitcoin ETF could open up new opportunities for investors to participate in the digital asset revolution.

In conclusion, the SEC’s decision to accept Valkyrie’s Bitcoin ETF proposal for official review marks an important milestone in the blockchain industry. The proposal represents a concerted effort by market participants to offer regulated and convenient access to Bitcoin for investors. As the regulatory landscape continues to evolve, the approval of a Bitcoin ETF could have far-reaching implications for the adoption and acceptance of cryptocurrencies.