Valkyrie Digital Belongings filed an application on Friday for a bitcoin exchange-traded fund (ETF), the second such submitting within the final 30 days.
The Valkyrie Bitcoin Fund could be listed on the New York Inventory Trade and Coinbase Custody Belief Firm, LLC would function the custodian for the proposed ETF, based on Dallas-registered Valkyrie Investments, the mother or father of Valkyrie Digital Belongings,.
Leah Wald, CEO of Valkyrie Investments, informed CoinDesk, “Our govt group has beforehand launched a number of ETFs, publicly traded funds, and ETPs, together with bitcoin funds.”
Wald explains the group behind the ETF consists of, “Steven McClurg and John Key who’ve collectively labored on over 100 esoteric and novel offers which have handed regulatory scrutiny.”
Whereas an ETF is seen as advantageous as a result of it trades on the inventory market in a lot the identical approach as shares in widespread corporations resembling Apple and Microsoft, through the years the U.S. Securities and Trade Fee has rejected bitcoin ETF proposals as a consequence of considerations about market volatility and trade manipulation.
Nonetheless, there’ve been indicators the SEC is warming to the thought. In October 2020, then-Chairman Jay Clayton, who many noticed as lukewarm towards crypto, stated the company was still open to contemplating ETF proposals.
Now, with a brand new administration inflicting a altering of the guard on the SEC, it’s broadly hoped by crypto advocates that such an ETF will probably be accepted in 2021. Clayton stepped down formally last month and was changed by Gary Gensler, who’s widely seen as being extra pro-crypto than is his predecessor.
Additionally including to optimism is that this month’s departure of Dalia Blass, the director of the SEC’s division of funding administration. Blass was the creator of a 2018 letter throughout the SEC expressing considerations that the bitcoin market was not massive sufficient or liquid sufficient to be prepared for an exchange-traded product.
CORRECTION (Jan. 23, 18:03 UTC: Adjustments to notice that Valkyrie Investments relies in Dallas, not Valkyrie Digital Belongings.