Bitcoin
SEC Acknowledges Bitcoin ETF Application by Valkyrie
The U.S. Securities and Exchange Commission (SEC) has acknowledged Valkyrie’s Bitcoin ETF application, starting clock on the review process. There is a growing expectation that a spot Bitcoin ETF will finally get approval after the politically connected BlackRock, the biggest fund manager in the world, also lodged a Bitcoin ETF application.
Valkyrie is following on the heels of BlackRock’s groundbreaking Bitcoin ETF application, which set the benchmark for potential SEC acceptance by including a surveillance agreement with the partner exchange, something the SEC had hinted at as one of its concerns. This led to a number of immediate amendments to Bitcoin ETF applications submitted by:
- Fidelity
- VanEck
- And Cathie Wood’s Ark Invest.
- Galaxy Digital
- WisdomTree
- BitWise
The race to be the first to get approval is highly competitive as it will likely lead to a rush of funds into the first approved ETF, giving it a liquidity advantage over any subsequently approved Bitcoin ETFs.
Bitcoin ETF Race Gains Momentum
ARK Invest’s Cathie Wood believes ARK should be ahead of BlackRock in the approval process because they lodged their initial application first, and in keeping with SEC practice, should be reviewed first.
Valkyrie submitted their Bitcoin ETF proposal on June 21, shortly after BlackRock’s groundbreaking proposal. The financial services firm has chosen ‘BRRR’ as the ticker for their ETF, which is a nod to the meme representing the sound of printing money.
What’s next?
With the proposal listed on the SEC’s official calendar, the comment period begins. This period allows the public and other institutions to share their opinions on the ETF, including its potential impact on the market and investor protection measures. The comment period will last for 21 days from the filing date in the Federal Register, as specified by the SEC.
After the comment period concludes, the SEC will evaluate the ETF proposal. They may request additional information from the applicants before making their decision.
The acknowledgement of the application starts the clock on the 45 day window for a decision. The SEC can choose to delay a decision for up to 240 days, and eventually reject the application, as it has done on numerous occasions to date.