Crypto fund manager Valkyrie has joined a growing group of financial entities seeking to create Bitcoin spot exchange-traded funds (ETFs).The firm submitted an S-1 registration form to the U.S. Securities and Exchange Commission (SEC) on June 21, expressing its intent to create a Bitcoin spot ETF. The proposed fund, if approved, would be added on the Nasdaq list under the ticker symbol $BRRR.
Valkyrie already has an established track record with Bitcoin (BTC) futures ETFs. It launched the Valkyrie Bitcoin Strategy ETF (BTF), the second BTC futures ETF in the U.S, in October 2021. The Valkyrie Balance Sheet Opportunities (VBB) was launched in December of the same year, though it was liquidated in October 2022. Currently, Valkyrie also operates the Valkyrie Bitcoin Miners ETF (WGMI), which is designed to track the performance of companies that generate revenue or profits from BTC mining.
The move by Valkyrie is indicative of a broader trend within the financial sector, with several entities recently filing applications for Bitcoin spot ETFs. Notably, BlackRock, the world's largest asset manager, filed to list a BTC spot ETF on the Nasdaq as a trust on June 15. Additionally, New York-based asset management fund WisdomTree and global fund manager Invesco lodged their applications for a similar product on June 20. There are also rumors of Fidelity preparing to file an application for a BTC spot ETF, although these reports remain unconfirmed.
Valkyrie's decision to file for a Bitcoin spot ETF may have been catalyzed by the actions of these other financial firms. Valkyrie Investments' chief investment officer, Steven McClurg, had previously stated in a podcast earlier in March that he believed a BTC ETF would only become feasible "in a future administration after the next elections or through legislative action."
The rise in Bitcoin spot ETF filings comes as Bitcoin's value exhibits significant growth, registering a 6.41% increase at the time of the report. The flurry of recent filings points to a heightened interest in providing investors with exposure to Bitcoin without the need to hold the cryptocurrency directly.
A Bitcoin spot ETF is a fund that intends to track the value of Bitcoin itself, rather than Bitcoin futures contracts. This form of ETF would purchase Bitcoin directly, allowing investors to gain exposure to the asset without needing to buy, store, or manage the cryptocurrency themselves.
Bitcoin spot ETFs have been a topic of keen interest and ongoing debate within the financial sector for several years. While the idea has attracted considerable attention, approvals from regulatory bodies have been slow to come, primarily due to concerns about market volatility, the potential for manipulation, and regulatory oversight of the underlying Bitcoin market.
Valkyrie's filing, along with those from other financial powerhouses, signals a growing optimism that these concerns can be overcome and that the SEC may be ready to approve the launch of a Bitcoin spot ETF. The move by these firms to apply for spot Bitcoin ETFs could represent a significant shift in the cryptocurrency investment landscape.
While Valkyrie has a history with Bitcoin futures ETFs, their new application reflects an effort to provide investors with more direct exposure to Bitcoin. This comes amidst a broader trend in the financial sector of blending traditional investment mechanisms with the emerging world of cryptocurrencies.
These developments underscore the growing acceptance of Bitcoin and other cryptocurrencies within mainstream finance. Precisely in this same sense, the approval of Bitcoin spot ETFs could open the floodgates for similar products, paving the way for increased institutional investment in cryptocurrencies. It is important to note, however, that while the trend of filings is optimistic, it doesn't guarantee approval from regulatory bodies.
This current perceived rush for Bitcoin spot ETFs illustrates an emerging shift in the traditional finance sector towards embracing digital assets. This comes as Bitcoin continues to gain in value, highlighting the potential for such ETFs to become a key tool for investors seeking exposure to the digital asset without the associated risks of direct ownership.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
