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 Alternate and Coinbase Custody Belief Firm, LLC would function the custodian for the proposed ETF, in keeping with Dallas-registered Valkyrie Investments, the guardian of Valkyrie Digital Property,.
Leah Wald, CEO of Valkyrie Investments, instructed 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 manner as shares in common corporations resembling Apple and Microsoft, through the years the U.S. Securities and Alternate Fee has rejected bitcoin ETF proposals because of issues about market volatility and trade manipulation.
Nonetheless, there’ve been indicators the SEC is warming to the concept. 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 shall be accepted 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 giant sufficient or liquid sufficient to be prepared for an exchange-traded product.
CORRECTION (Jan. 23, 18:03 UTC: Modifications to notice that Valkyrie Investments relies in Dallas, not Valkyrie Digital Property.