- June 22, 2023
- Posted by: [email protected]
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Cryptocurrency fund manager Valkyrie has joined the growing list of financial firms applying for a Bitcoin spot exchange-traded fund (ETF), signaling the increasing interest in bringing crypto investment options to mainstream investors. The company’s move comes as at least three other major players have recently filed similar applications with the United States Securities and Exchange Commission (SEC). Rumors are also circulating that Fidelity, a renowned financial services provider, is preparing to enter the race.
On June 21, Valkyrie filed an S-1 registration form for its Bitcoin spot ETF, hoping to float the fund on the Nasdaq under the ticker BRRR. Valkyrie is making its first foray into BTC spot ETF territory, but it is no stranger to the cryptocurrency investment world. The Valkyrie Bitcoin Strategy ETF (BTF) was launched in October 2021, making the company the second issuer of BTC futures ETFs in the United States. Later that year, in December, Valkyrie established the Valkyrie Balance Sheet Opportunities (VBB) ETF, which it would liquidate in October 2022. Furthermore, the firm administers the Valkyrie Bitcoin Miners ETF (WGMI), which invests in companies that generate money from Bitcoin mining.
Valkyrie’s decision to pursue a BTC spot ETF follows in the footsteps of its competitors. Valkyrie Investments Chief Investment Officer, Steven McClurg, previously expressed his belief that a Bitcoin ETF would only become possible “in a future administration after the next elections or through legislative action.” However, recent developments have accelerated the race for Bitcoin ETF approval. On June 15, BlackRock, the world’s largest asset manager, applied to list a BTC spot ETF as a trust. WisdomTree and Invesco followed suit, filing applications on June 20. According to market rumors, Fidelity, known for its broad variety of financial services, may also join the race by launching an application for a BTC spot ETF.
As Valkyrie and other financial firms vie for regulatory approval, Bitcoin’s value continues to surge. At the time of writing, the leading cryptocurrency has witnessed an impressive 6.41% increase in its price. This bullish trend further emphasizes the growing demand for regulated investment products that provide exposure to digital assets.
By seeking approval for a Bitcoin spot ETF, Valkyrie aims to diversify its cryptocurrency investment offerings and provide investors with an additional avenue to gain exposure to the evolving digital asset market. If approved, the Valkyrie Bitcoin spot ETF would enable investors to participate in Bitcoin price movements through a traditional exchange-traded fund structure, potentially attracting a wider range of market participants seeking regulated crypto investment options.
The influx of applications for Bitcoin spot ETFs signifies a significant milestone in the integration of digital assets into mainstream investment strategies. As regulatory scrutiny and market demand continue to rise, the path towards Bitcoin spot ETF approval appears to be gaining momentum, potentially opening new avenues for both investors and cryptocurrency enthusiasts alike.
