The United States Securities and Exchange Commission (SEC) has taken a significant step toward the potential approval of a Bitcoin exchange-traded fund (ETF) by accepting Valkyrie’s proposal for official review. This development marks the second spot Bitcoin ETF proposal being considered by the SEC, following closely on the heels of BlackRock’s proposal.
Valkyrie had previously attempted to launch a spot Bitcoin ETF on the New York Stock Exchange in January 2021 but faced regulatory hurdles from the SEC. Despite the challenges, Valkyrie successfully launched a futures-based Bitcoin ETF in October 2021. Now, with their renewed proposal for a spot Bitcoin ETF, Valkyrie aims to provide investors with direct exposure to Bitcoin.
The recent filing by Valkyrie, which occurred in late June 2023, has generated optimism within the cryptocurrency community. This positive sentiment was further amplified by BlackRock’s decision to refile its spot Bitcoin ETF proposal on June 29. These filings indicate a growing interest among financial institutions in offering Bitcoin investment products to mainstream investors.
Valkyrie’s proposed ETF, if approved, would exclusively hold Bitcoin and facilitate the creation and redemption of baskets of Bitcoin shares. This means that investors would be able to trade the ETF shares on a regulated exchange, offering them a convenient and regulated way to gain exposure to Bitcoin’s price movements without directly owning the underlying asset.
The SEC has initiated a comment period for the public, allowing stakeholders to provide feedback on Valkyrie’s spot Bitcoin ETF proposal. This comment period will last for 21 days, concluding on August 7. Following the comment period, the SEC has up to 45 days, or potentially a longer period of up to 90 days, to evaluate and make a decision on whether to approve or disapprove the proposed rule change.
On July 16, 2023, the US SEC accepted the spot Bitcoin ETF application from BlackRock, as well as other filings from Fidelity Investments, WisdomTree, VanEck, Invesco, and others. This acceptance demonstrates that the regulator is giving these applications serious consideration, and if a spot Bitcoin ETF is approved, it would be a significant win for the crypto market.
Bitcoin’s price has experienced a recent rally following BlackRock’s filing for a spot Bitcoin ETF, which has subsequently prompted other filings for similar ETFs. The price of Bitcoin has surpassed the $30,000 mark once again and remains above it as investors eagerly await news on the acceptance of Bitcoin ETF filings.
Over the past 24 hours, the price of BTC has seen a 1% decrease, currently trading around the $30,000 level. The lowest and highest prices recorded during this period were $29,685 and $30,330, respectively. Moreover, there has been a slight increase of 68% in trading volume over the past 24 hours, indicating heightened interest among traders.