Valkyrie Digital Property filed an application on Friday for a bitcoin exchange-traded fund (ETF), changing into the second firm to take action in a month.
In accordance with Dallas-registered Valkyrie Digital Property, the Valkyrie Bitcoin Belief can be listed on the New York Inventory Alternate and Coinbase Custody Belief Firm, LLC would function the custodian for the proposed ETF.
Leah Wald, CEO of Valkyrie Digital Property, advised CoinDesk, “Our govt workforce has beforehand launched a number of ETFs, publicly traded funds, and ETPs, together with bitcoin funds.”
Wald explains the workforce behind the ETF consists of, “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 standard corporations reminiscent of Apple and Microsoft, over time the U.S. Securities and Alternate Fee has rejected bitcoin ETF proposals because of considerations about market volatility and trade manipulation.
Nonetheless, there’ve been indicators the SEC is warming to the thought. 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 broadly hoped by crypto advocates that such an ETF will probably be authorized 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 throughout the SEC expressing considerations that the bitcoin market was not giant sufficient or liquid sufficient to be prepared for an exchange-traded product.