Valkyrie & BlackRock Among Giants to Launch Bitcoin ETFs: Will the SEC Approve? 

The SEC has yet to approve a single Bitcoin spot ETF. Despite that, firms like Valkyrie and Blackrock are hopeful.

Boy walking towards Bitcoin sign over black rocky mountains.
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  • Valkyrie Investments has applied for SEC approval for its Bitcoin ETF, joining BlackRock and other major firms.
  • The SEC’s stance on Bitcoin ETFs has been cautious. 
  • The approval of a Bitcoin ETF could impact BTC’s price.

Even amid the SEC’s crackdown on crypto, major financial institutions are jumping into the industry. Valkyrie Investments has joined the likes of BlackRock in seeking approval from the U.S. Securities and Exchange Commission (SEC) for its Bitcoin ETF

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This move comes amidst a broader push for regulatory acceptance of crypto-based financial products. 

Valkyrie’s and Other Investment Giants Push For Bitcoin ETFs

On June 21, 2023, Valkyrie Investments submitted an application to the SEC for its spot Bitcoin ETF named ‘Valkyrie Bitcoin Fund’ under the ticker BRRR. 

The move places Valkyrie in the same league as BlackRock, Invesco, WisdomTree, and Bitwise, all of which have made similar applications recently. This is despite the SEC’s cautious approach to Bitcoin ETFs so far. 

DailyCoin reached out to Valkyrie and other firms which filed ETFs. BlackRock confirmed filing a registration statement with the SEC. However, the company stated they could not provide additional comments due to filing restrictions. Investco also said they could not provide any comments about the filing.

DailyCoin also contacted Fidelity, reiterating that, despite rumors, it had made no ETF filings since 2022, when it was previously denied.

SEC’s Stance on Bitcoin ETFs

The U.S. Securities and Exchange Commission (SEC) has been cautious in its approach to Bitcoin ETFs. In particular, the agency has so far only approved futures-based Bitcoin ETFs. 

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Specifically, these ETFs track Bitcoin prices through futures contracts rather than the cryptocurrency’s spot price. The first such ETF, the ProShares Bitcoin Strategy ETF, was approved in October 2021. 

Since then, several other Bitcoin ETFs have made their debut. However, the SEC has consistently rejected applications for spot Bitcoin ETFs. For instance, on June 30, 2022, the SEC rejected Grayscale Investments’ application to convert its Bitcoin Trust (GBTC) into an ETF. 

The SEC’s cautious stance is based on several concerns about funds potentially investing in digital assets. These concerns include issues related to “valuation, liquidity, custody, arbitrage mechanisms, and potential manipulation” and other risks in the crypto market. 

Valkyrie’s ‘BRRR’ Bitcoin ETF

Valkyrie’s application represents a significant step in the ongoing efforts to gain regulatory acceptance for crypto-based financial products.

To differentiate and potentially appeal to crypto investors, they chose the ticker symbol “BRRR.” In the crypto community, “BRRR” is often used to refer to the sound of a money printer, symbolizing the creation of new money or the rise in the value of a cryptocurrency. 

Valkyrie Investments is just one of the six investment firms recently applying for Bitcoin ETF licenses in the US. BlackRock, the world’s biggest asset manager, filed for a Bitcoin ETF on June 15, 2023. 

  • Bitcoin ETFs give a slightly lower return than holding Bitcoin outright. 
  • Financial institutions prefer holding Bitcoin ETFs to holding BTC directly. There are various reasons for this, including regulations and custody issues, security risks, and more. 

Why This Matters

The SEC’s approval of a Bitcoin ETF could significantly impact the crypto trading landscape. Greater liquidity and an inflow of institutional money will likely boost its price. 

Read more about the strategy guiding major institutions in their crypto play: 

Are BlackRock and Fidelity Looking to Own U.S. Crypto Through Bitcoin ETF Offerings?

Read more about EXD Markets, another crypto venture by major institutions: 

EDX: Everything You Need to Know About the Wall Street-Backed Crypto Exchange

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
David Marsanic

David Marsanic is a journalist for DailyCoin who covers the intersection of crypto, traditional finance, and government. He focuses on institutionalized crypto entities like major cryptocurrency exchanges and Solana, breaking down complex topics into easy-to-understand writing. David's prior experience as a business journalist at various crypto and traditional news sites has enabled him to maintain a critical approach to news while adhering to high journalistic integrity standards.