Cryptocurrency fund manager Valkyrie has joined other finance firms in applying for a Bitcoin spot exchange-traded fund (ETF), filing an S-1 registration form with the United States Securities and Exchange Commission (SEC) on June 21. The firm plans to list its fund on Nasdaq under the symbol BRRR. It seems that the recent moves from its competitors have motivated Valkyrie to join the race for a BTC spot ETF.
Valkyrie is no stranger to BTC futures ETFs, having launched the Valkyrie Bitcoin Strategy ETF (BTF) in October 2021, and the Valkyrie Balance Sheet Opportunities (VBB) in December of the same year. The firm liquidated VBB in October 2022 and also runs the Valkyrie Bitcoin Miners ETF (WGMI).
The push for a BTC spot ETF has seen other finance firms like BlackRock, WisdomTree, and Invesco all filing similar applications in the past week. Unconfirmed reports suggest Fidelity is also preparing to file an application. This surge in applications is quite impressive, considering Valkyrie Investments chief investment officer Steven McClurg expressed skepticism about a BTC ETF in a March podcast. He believed that it would only be possible “in a future administration after the next elections or through legislative action.”
However, BlackRock’s application on June 15 to list a BTC spot ETF on Nasdaq opened the floodgates for more applications. As these firms seek approvals for their respective ETFs, BTC prices continue to rise, experiencing a 6.41% increase at the time of writing.
The addition of Valkyrie’s application to the ever-growing list signposts a clear optimism and urgency in the market to gain approval for a BTC spot ETF. On the other hand, it raises questions about whether the market will become saturated with multiple ETF offerings. The SEC is in a sensitive position of deciding the justification for further ETF approvals in the market, taking into consideration the true need for such products and their potential impact.
While the interest in BTC ETF applications is certainly increasing, it remains to be seen how the SEC will respond and whether Valkyrie and other firms can convince regulators of the necessity for their respective offerings. The outcome of these applications will reflect not only on the firms themselves but also the crypto markets and their continued development and integration into the traditional financial landscape.
Source: Cointelegraph
