Fund management firm Valkyrie Investments has filed for
a Bitcoin spot exchange-traded fund (ETF) joining several companies that have
submitted similar applications in the last week. The application was filed with
the Securities and Exchange Commission (SEC) on June 21.
If the application is
granted, Valkyrie’s Bitcoin spot ETF would be listed on Nasdaq under the symbol
BRRR, the company noted in an S-1 registration form. The Bitcoin spot ETF would
issue common shares that will track the performance of Bitcoin as represented
by the CME CF Bitcoin reference Rate in New York.
Valkyrie joins a long
list of management companies seeking approval for a spot bitcoin ETF despite
the reluctance of the SEC. Most recently, BlackRock applied for a spotBitcoin ETF that would also use the CME CF Bitcoin Reference rate to track the
price of the top cryptocurrency.
The decision by
the SEC to reject a spot bitcoin in the past has always been due to one problem:
the lack of adequate regulations in the market. That was the case with WisdomTree
and
Cboe BZX’s Bitcoin Spot ETF Exchange’s application, which were both rejected on the same grounds.
However, Canada and Australia have approved several spot ETFs for Bitcoin and
Ethereum.
Valkyrie filed a fresh
application for a Bitcoin futures ETF dubbed the Valkyrie Bitcoin Futures
Leveraged Strategy ETF (BTFD) in May. Unlike the firm’s already active BTF
Fund, BTFD allows investors to use debt to speculate. During the unveiling, the
company said it had seen a rising demand among institutions for the price and
volatility of Bitcoin without holding the digital asset.
Valkyrie’s Bitcoin
Futures ETF
Valkyrie was the second to launch a Bitcoin futures ETF in 2021, the Valkyrie
Bitcoin Strategy ETF (BTF), after ProShares. However, Valkyrie was forced to
discontinue Valkyrie
Balance Sheet Opportunities ETF,
a separate fund that offered investors indirect exposure to Bitcoin, due to low demand.
The other companies also piling pressure on the SEC to approve spot bitcoins ETFs are WidomTree and Invesco. Both asset management firms announced intentions to create their own spot bitcoin ETFs on Wednesday. It is the second time that Invesco is seeking to create a spot Bitcoin ETF after an earlier attempt in partnership…
