The recent acceptance of the Valkyrie Spot Bitcoin exchange-traded fund (ETF) application by the United States Securities and Exchange Commission (SEC) marks a significant milestone in embracing the digital revolution and potentially driving mass cryptocurrency adoption in the largest economy globally. If granted approval, the Valkyrie Spot Bitcoin ETF will be the first of its kind, offering investors exposure to Bitcoin without the need to physically own any cryptocurrency. This development represents a pivotal moment for the crypto community and signals a potential breakthrough.
On July 17, the SEC approved Valkyrie’s requested rule amendment to list and trade the Bitcoin ETF on the Nasdaq. The publication of the Federal Register notice initiates a 21-day period for the public to provide comments, after which the United States will conduct its review based on the feedback received.
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Eric Balchunas, a senior ETF analyst at Bloomberg, shared the news on Twitter after the SEC approved Valkyrie’s registration. Valkyrie was the final company to submit an application for a spot Bitcoin ETF among numerous firms seeking approval. Balchunas also highlighted that Valkyrie chose the ticker symbol “BRRR” for its Nasdaq debut.
In addition to Valkyrie, the SEC has already approved an application for a BlackRock spot Bitcoin ETF, along with filings from other prominent financial firms like Fidelity Investments, WisdomTree, VanEck, Invesco, and ARK 21Shares. These acceptances demonstrate the regulator’s consideration of ETF applications, and the approval of a Bitcoin ETF would be a significant victory for the crypto industry.
The journey towards a Bitcoin ETF in the United States has been lengthy and complex, with the SEC rejecting previous proposals due to concerns regarding market manipulation, insufficient oversight, and inadequate investor protection. Such rejections have delayed the potential mainstream adoption of digital assets, frustrating the crypto community.
The proposed Valkyrie Spot Bitcoin ETF aims to provide investors with a straightforward and regulated avenue to invest in Bitcoin. By accepting Valkyrie’s application, the SEC indicates a changing regulatory climate, demonstrating a willingness to engage with the growing market for crypto investment products that comply with established rules.
While the acceptance of the application is a positive development, it does not guarantee final approval. The SEC will conduct a thorough review, considering factors such as market impact, investor safety, and overall economic benefits.
Market participants and enthusiasts will closely watch the SEC’s decision, as it may signify a more receptive stance toward cryptocurrencies and establish a precedent for future ETF applications.
Disclaimer: Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Cryptocurrency is not a legal tender and is subject to market risks. Readers are advised to seek expert advice and read offer document(s) along with related important literature on the subject carefully before making any kind of investment whatsoever. Cryptocurrency market predictions are speculative and any investment made shall be at the sole cost and risk of the readers.
