Steven McClurg, Chief Investment Officer at Valkyrie Investments, expresses optimism for a US Securities and Exchange Commission (SEC) approval of a spot Bitcoin ETF by November’s end, a significant development for the cryptocurrency market.
Valkyrie Investments is actively pursuing SEC approval for a spot Bitcoin ETF. The firm currently manages two Bitcoin-related ETFs. McClurg anticipates a second round of comments on Valkyrie’s spot Bitcoin ETF application in the coming weeks, potentially setting the stage for rule changes (19b-4) approval by November’s end.
Timeline for Approval and Launch
Should the SEC grant approval late in November, the ETF‘s launch could occur in February. McClurg envisions the SEC might request applicants to finalize their S-1 filings in January, a prerequisite for ETFs to begin trading.
Recent weeks have seen the SEC meticulously reviewing spot Bitcoin ETF applications, focusing on aspects like risk disclosures, index methodologies, Net Asset Value (NAV) calculations, environmental risks, and custody practices. Notably, amendments to applications, as seen in submissions by BlackRock and VanEck, have added clarity to initial fund-seeding processes.
Industry experts remain cautiously optimistic about potential approval. Challenges like market manipulation and custody concerns persist, but the demand for spot Bitcoin ETFs is substantial. Estimates suggest billions of dollars could flow into these products within the first few months after launch.
Valkyrie filed a revised spot Bitcoin ETF application on October 30, outlining the Valkyrie ETF’s proposed listing on the Nasdaq Stock Market under the ticker “BRRR.” This move aligns with a broader trend where firms are amending their spot Bitcoin ETF applications in anticipation of regulatory approval.
As of the latest data, Bitcoin was trading at $34,456, moving within an upward trending channel in shorter timeframes.