2021 was an explosive year for bitcoin, as the crypto asset reached new price spikes, as cryptocurrencies increased demand. Meanwhile, several proponents of cryptography hope that the first exchange-traded fund (ETF) will be approved this year, as several companies are rushing to launch an ETF. On Friday, Texas-based firm Valkyrie Digital Assets submitted an ETF registration proposal called the Valkyrie Bitcoin Trust, with the hope of listing the fund on the New York Stock Exchange (NYSE).
Crypto proponents expect approval of a bitcoin-traded fund in the U.S. this year
This year could be the year that US regulators will approve a bitcoin-based exchange traded fund (ETF) hosted on a major stock exchange. For example, in December, news.Bitcoin.com reported about Vaneck’s bitcoin-based ETF filing with the U.S. Securities and Exchange Commission (SEC).
This week, Vaneck also filed to another publicly traded fund, called Digital Asset ETF, which aims to hold shares in companies that generate revenue from cryptocurrency services. Meanwhile, at the same time, Canadian investment fund manager Arxnovum Investments filed for a bitcoin-based ETF with Canada’s Ontario Securities Commission.
Now, another company has joined the bitcoin ETF race like Texas-based Valkyrie Digital Assets, registered for a bitcoin fund on Friday, January 22. Valkyrie notes in the request that the fund intends to list the shares on NYSE Arca. After the filing became public, crypto proponents discussed the ETF’s new entry on social media. For example, CFA crypto James Seyffart, talked about Valkyrie’s ETF registration and told his 3,800 followers on Twitter that he expects a bitcoin ETF approval this year.
“And there is another participant in the Bitcoin ETF Race,” Seyffart said. Showing a list of all companies that are requesting publicly traded funds. Seyffart further I wrote: The current status of the Bitcoin ETF race with a new late participant. Important note: As far as I can tell, no 19b-4 has been filed, what are the filings that start the 240-day clock for the SEC to make a decision. ”Seyffart added:
Risking my neck a bit – I think we’ll see a U.S. Bitcoin ETF in 2021 if Gensler is confirmed to head the SEC. The guy is extremely knowledgeable about Blockchain / crypto. He even gives a class at MIT on the subject. That said, I think you can expect new regulations to arrive in the SEC’s cryptographic space. Do not think that we will see definitive bans as some bitcoin bears like to claim. But we will definitely see more scrutiny and regulation, as Mike McGlone also said.
Valkyrie insists that an ETF is an economical and convenient way to invest in Bitcoin
Valkyrie believes that the ETF will give investors a more affordable method of investing in BTC. “The purpose of the trust is to maintain bitcoins, which are a digital commodity based on the cryptographic protocols used by the decentralized and point-to-point computer network,” says the Valkyrie document.
The ETF Valkyrie record emphasizes that an investment in the trust involves significant risks. Valkyrie’s bitcoin fund registration further emphasizes that the fund may not be suitable for shareholders who cannot accept further risk.
“The investment objective of the trust is that the shares reflect the performance of the value of a bitcoin as represented by the index, less the responsibilities and expenses of the trust. The shares are designed to provide investors with an economical and convenient way to invest in bitcoin, ”adds the investment firm’s record.
Do you think regulators will approve a bitcoin ETF in 2021? Let us know in the comments section below.
Image credits: Shutterstock, Pixabay, Wiki Commons, The Valkyrie ETF filing, NASCAR
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