Many organizations are once again lined up to deliver crypto ETFs, but will the SEC resolve its past reticence?
In a development that could offer veteran investors flashbacks to 2018, Valkyrie Digital Assets is the newest wealth management company to register with SEC to shape a Bitcoin ETF—a bid that enters a competitive field of prospective investment managers seeking to leverage on revived institutional interest in cryptocurrencies.
Filed on Friday, the Texas-based family investment fund proposed listing the Valkyrie Bitcoin Trust on the New York Stock Exchange. The application did not include a possible trading ticker.
However, if the experience is any indication, the odds of filing a tradeable fund are small. During the last bitcoin bull market, several companies tried to throw their hat into the ring when at least nine organizations filed proposals for the Bitcoin ETF with the SEC, including ETF giants VanEck and Direxion, as well as Gemini, the crypto services company founded by Cameron and Tyler Winklevoss.
In a previous interview with Cointelegraph, Donnie Kim, CEO of Kryptoin, whose company applied for the ETF in October 2019, said that the SEC has long been slow to go on with proposals.
“At this moment in time the commission is listening and learning about this new asset class and they are in a holding pattern, partly to understand the consequences of the existing products on the market and partly to look for further guidance under the current political landscape,” said Kim.
Despite the Commission’s historical reticence, as institutional interest in cryptocurrency bubble fund managers once again pretend to be the first to sell an ETF offering.
On Thursday, January 21, ETF giant VanEck—the first company ever to apply for a Bitcoin fund—submitted to form the Digital Assets ETF, which will chart the success of the Global Digital Assets Stock Index made up of crypto service firms.
Although American ETFs have been difficult to achieve, other exchange-traded goods are booming. The alternatives for traders include the Swiss Bitcoin ETP, the bevvy of Grayscale goods that could be extended to include Chainlink in the coming months, and the Ethereum ETF in Canada, which proved to be too successful, had to be halted in its debut.
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