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Steven McClurg, Chief Investment Officer at Valkyrie Investments, has expressed optimism about the US Securities and Exchange Commission (SEC) approving a spot Bitcoin ETF by the end of November. This approval carries significant implications for the cryptocurrency market.
Valkyrie Investments is among the firms seeking approval from the SEC for a spot in Bitcoin ETF. Currently, the company manages two Bitcoin-related ETFs. McClurg anticipates that the SEC will issue a second round of comments on Valkyrie’s spot Bitcoin ETF application in the next few weeks. These comments could pave the way for the approval of rule changes (19b-4) by the end of November.
Timeline for Approval and Launch
McClurg’s expectations suggest that if the approval occurs in late November, the ETF launch could take place in February. He also notes that the SEC might request applicants to finalize their S-1 filings in January. The approval of 19b-4s and S-1s is necessary for these ETFs to commence trading.
In recent weeks, the SEC has been carefully examining spot Bitcoin ETF applications. Their scrutiny focuses on various aspects, including risk disclosures, index methodologies, Net Asset Value (NAV) calculations, environmental risk factors, and custody practices. Notably, amendments to applications, such as those submitted by BlackRock and VanEck, have clarified initial fund seeding processes.
Cautious Optimism
Industry experts are cautiously optimistic about the potential approval. Market manipulation and custody concerns are among the challenges that remain. Despite these challenges, the demand for spot Bitcoin ETFs is substantial. Estimates suggest billions of dollars could flow into these products within the first few months after launch.
Valkyrie submitted a revised spot Bitcoin ETF filing on October 30, outlining the Valkyrie ETF and its proposed listing on the Nasdaq Stock Market under the ticker “BRRR.” This move aligns with a broader trend of firms amending their spot Bitcoin ETF applications in anticipation of regulatory approval.
BTC has formed a rising channel, 2-hour chart | Source: TradingView
As of the latest data, Bitcoin was trading at $34,456, moving within an upward trending channel in shorter timeframes.
