Valkyrie Digital Property 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 can be listed on the New York Inventory Alternate and Coinbase Custody Belief Firm, LLC would function the custodian for the proposed ETF, in response to Dallas-registered Valkyrie Investments, the dad or mum of Valkyrie Digital Property,.
Leah Wald, CEO of Valkyrie Investments, advised CoinDesk, “Our government workforce has beforehand launched a number of ETFs, publicly traded funds, and ETPs, together with bitcoin funds.”
Wald explains the workforce 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 manner as shares in common firms comparable to Apple and Microsoft, through the years the U.S. Securities and Alternate Fee has rejected bitcoin ETF proposals as a consequence of considerations about market volatility and business 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, mentioned 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 extensively hoped by crypto advocates that such an ETF will probably be permitted 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 giant sufficient or liquid sufficient to be prepared for an exchange-traded product.
CORRECTION (Jan. 23, 18:03 UTC: Adjustments to notice that Valkyrie Investments is predicated in Dallas, not Valkyrie Digital Property.