The Race For The First Bitcoin ETF Is Heating Up

The Race For The First Bitcoin ETF Is Heating Up

The race for the first Bitcoin ETF is heating up after Valkyrie Digital Assets filed an application with the SEC on Friday 22 January for a Bitcoin (BTC) exchange-traded fund (ETF).

According to the filing, the investment firm’s Valkyrie Bitcoin Trust ETF will be listed on the New York Stock Exchange (NYSE) and Coinbase Custody Trust Company will serve as the custodian.

It’s the second Bitcoin ETF proposal in the last month after Bitcoin Maximalist reported on Vaneck’s latest filing for its own Bitcoin ETF.

The Valkyrie Bitcoin Trust ETF intends to list on NYSE Arca, as opposed to VanEck’s proposal which will be listed on the CBOE BZX Exchange.

In the filing, Texas-based Valkyrie claims its exchange-traded fund offers a cost-effective way to gain exposure to BTC, without the stresses of having to self-custody.

‘The investment objective of the trust is for the shares to reflect the performance of the value of a bitcoin as represented by the index, less the trust’s liabilities and expenses. The shares are designed to provide investors with a cost-effective and convenient way to invest in bitcoin.’

Valkyrie does warn of ‘significant risks’, however, citing ‘extreme volatility’ as one of several factors. The investment firm also emphasises how ‘macro factors such as interest rates, monetary policy, broader market uncertainty and geopolitical, social and economic events’ affect the Bitcoin price.

Valkyrie Investments CEO Leah Wald explained how the team were experienced at producing similar investment products many of which have passed SEC regulatory approval.

‘Our executive team has previously launched multiple ETFs, publicly traded funds, and ETPs, including bitcoin funds,’ said Wald. ‘[Our team includes] Steven McClurg and John Key who have collectively worked on over 100 esoteric and novel deals that have passed regulatory scrutiny.’

The Race For The First Bitcoin Exchange Traded Fund Is On

The race to become the first Bitcoin ETF in the US is heating up. It comes as no coincidence that two proposals have been made in the first month after anti-Bitcoin former SEC chairman Jay Clayton resigned from his post.

And with Gary Gensler expected to take the reins as SEC chairman, he is a known blockchain advocate, so approval for a Bitcoin ETF is far more likely.

Gensler is an MIT lecturer and his research and teaching has focused on blockchain technology, digital currencies, financial technology, and public policy.

In 2018, Gensler taught Blockchain and Money at MIT. The courses includes video lectures, assignments, reading lists, additional insights from Gensler, and is available free.

If Gensler is confirmed to run the SEC, therefore, we can be confident a Bitcoin ETF will be passed, and likely this year.

The SEC has 240 days to work on each proposal, so we are unlikely to hear anything until Q3, but the race is definitely heating up.