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 could be listed on the New York Inventory Change and Coinbase Custody Belief Firm, LLC would function the custodian for the proposed ETF, based on Dallas-registered Valkyrie Investments, the mum or dad 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 contains, “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 standard firms equivalent to Apple and Microsoft, through the years the U.S. Securities and Change Fee has rejected bitcoin ETF proposals because of issues 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, 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 might be authorized 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 writer of a 2018 letter inside the SEC expressing issues 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 Property.