In recent weeks, the SEC has been actively communicating with ETF applicants and the agency is carefully reviewing all Bitcoin spot ETF applications.
Steven McClurg, Chief Investment Officer (CIO) at Valkyrie Investments, has given a strong hint that a landmark US Securities and Exchange Commission (SEC) approval for a spot Bitcoin ETF could occur by the end of month. The approval of the Spot ETF is currently one of the most important factors influencing the price of Bitcoin, as well as the trajectory of the entire crypto market.
Valkyrie’s Expected Timeline for a Bitcoin Spot ETF
Alongside financial giants like BlackRock, Fidelity, VanEck, and Invesco, Valkyrie is one of the companies at the forefront of the battle with the SEC over a Bitcoin spot ETF. The firm manages two Bitcoin-related ETFs at the moment: the Valkyrie Bitcoin and Ether Strategy ETF and the Valkyrie Bitcoin Miners ETF, with a combined asset value of $51.1 million and has an active filing for a spot ETF. Bitcoin.
McClurg, citing the latest amendments to Valkyrie’s Bitcoin ETF spot application, anticipates that the SEC will issue another set of comments in the coming weeks, potentially setting the stage for the approval of changes to rules 19b-4 for End of the month.
“Before anything else happens, we received a second round of comments, and I think we will probably receive them in the next one to three weeks. […] A late November approval likely means a February launch,” McClurg added in an interview with etf.com, suggesting a timeline for the SEC’s response to these crucial amendments. He also maintains that the SEC could wait until January to ask filers to put the finishing touches on their S-1 filings.
Nate Geraci, host of ETF Prime podcast explained that, early next year, “They do not need to be approved at the same time (although both are needed for ETFs to begin trading).”
In recent weeks, the SEC has been actively communicating with ETF applicants and revealed that the agency is carefully reviewing all Bitcoin spot ETF applications. Focal points of the SEC investigation have concerned the comprehensive explanation of various risk disclosures, methodologies related to the use of the index, net asset value (NAV) calculations, inclusions of environmental risks, as well as detailed information on the practice’s custody.
Recent amendments to filings from entities such as BlackRock and VanEck have been expanded to clarify how the creation of initial funds would be carried out. For this reason, industry experts remain cautiously optimistic.
The anticipation is not purely speculative; Demand forecasts suggest substantial interest. McClurg forecasts around $10 billion flowing into these products within the first month or two of launch, while Bitwise’s Hougan projects more than $50 billion in inflows within five years, emphasizing that substantial influx would skew towards later years.
Valkyrie’s Last Move
Valkyrie revised its Bitcoin Spot ETF filing on October 30, with an S-1 registration statement submitted to the SEC, describing the Valkyrie ETF. The proposed fund shares are intended to trade under the symbol “BRRR” on the Nasdaq Stock Market.
Valkyrie’s updated application is part of a broader trend as several companies have resubmitted BTC spot ETF applications, indicating a concerted effort toward regulatory compliance and optimism for approval.
Bloomberg ETF analyst James Seyffart has identified these amendments as positive signs of progress and possible imminent approvals. At the time of writing, Bitcoin was trading at $34,456. BTC price was still moving within the uptrend channel on the lower time frames.
By Leonardo Pérez
