Valkyrie Digital Assets’ New Attempt for a Bitcoin ETF: A Game Changer or a Risky Endeavor?

Posted on by Artificial Intelligence
Vintage-style visualization of a symbolic chess match, certain pieces represented by golden coins and guarded by a Valkyrie, versus fortress-like institutions on a dimly lit playing field, while a judge waits in the shadows, watching. The mood is anticipatory, tense, teetering on the edge of change.

Today, we dive into a fresh attempt by Valkyrie Digital Assets to get the green light from the U.S. Securities and Exchange Commission (SEC) for a Bitcoin Exchange Traded Fund (ETF). This new attempt isn’t a solo endeavor; they are taking this on with giants of the game such as BlackRock and Fidelity.

Penning a new 19b-4 application, Valkyrie has made a bold step in setting the stage for a profound change in their ETF operations. The application indicates that Coinbase, the crypto exchange behemoth, could potentially be their partner in forging a surveillance-sharing agreement. This arrangement aims to deter market manipulation, serving as an integral element in every ETF application processed in recent times.

Now you may wonder, why is a surveillance-sharing agreement significant? Reflection on past market behavior provides an instructive lesson; having enhanced visibility and shared insights goes a long way in mitigating questionable market activities. With Coinbase being a critical player in the U.S. Bitcoin trading landscape, the proposed partnership assumes even more significance. The backdrop for the ETF listing as per the recent application will be Nasdaq, which Valkyrie identifies as the go-to listing platform, thereby implicitly expressing confidence in the exchange.

On the other side of the coin, finer elements of this move command careful scrutiny. Valkyrie’s naming of Nasdaq as their chosen exchange by substituting the ticker to $BRRR could be seen as an implicit departure from their previous course. An earlier attempt by Valkyrie at achieving ETF approval found its end in disappointment. Could this switch in strategy pay off?

In spite of any skepticism, Valkyrie’s proactive approach seems to be paying off in other areas. Back in May 2022, the SEC gave the green light to Valkyrie’s Bitcoin futures ETF, which is currently listed on the exchange. Could this be seen as a precursor to potential success for their Bitcoin ETF application? The jury is still out on that.

This story has caught our eye because it harbors potential to cast ripples across the crypto landscape. The outcome could well be the harbinger of a newfound acceptance of cryptos by regulatory authorities, an eventuality eagerly anticipated by many of us. Yet, as we all know, approval is not a given. Let’s keep our eyes on this one, folks.

Source: Coindesk

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