Valkyrie has filed an application with the SEC to list a spot Bitcoin ETF, backed by Coinbase.
American asset manager Valkyrie has submitted a new application to list a Bitcoin ETF in the United States. And it has included a significant update to its proposal by establishing a Shared Surveillance Agreement (SSA) with Coinbase.
Such change in strategy comes in response to the US Securities and Exchange Commission (SEC) request for greater clarity and detail in the requests.
A spot Bitcoin ETF is an investment fund that is traded on a stock exchange and that aims to replicate the performance of the Bitcoin price. By investing in a spot Bitcoin ETF, users can gain exposure to Bitcoin without having to buy, store, and insure the cryptocurrency on their own.
Valkyrie Partners with Coinbase to Enhance US Bitcoin Fund Application
Valkyrie had first applied for a Bitcoin ETF in 2021, and refiled the paperwork with the SEC on June 21. Currently, as of July 3, Nasdaq has filed with the United States Securities and Exchange Commission (SEC) a document detailing its proposed rule change to allow the listing of the Valkyrie Bitcoin Fund, a spot ETF.
The request includes information about an agreement recently signed with Coinbase on June 30, which would allow Nasdaq complementary access to data related to Bitcoin spot trading.
The Experts’ Opinion
In this regard, Bloomberg analyst Eric Balchunas reported that Valkyrie filed a new application using a 19b-4 form, which is similar to the one used by BlackRock in the past.
Likewise, Balchunas has highlighted that the wording of Valkyrie’s Shared Surveillance Agreement (SSA) seems more aggressive, and underlines the importance of mentioning Coinbase as the main Bitcoin exchange in Spot. These details could be significant to the evaluation of the application by the United States Securities and Exchange Commission and could have an impact on the final decision.
On July 5, Balchunas tweeted the following:
“Valkyrie also re-filed their 19b-4, like BlackRock they mention specific SSA agreement w/ Coinbase, even seems more aggressive (more use of the words ‘executed’ and ‘agreement’) They also, like BlackRock, call Coinbase largest US spot bitcoin exch h/t @NateGeraci.”
On July 5, Vildana Hajric quoted James Syffart, Bloomberg Intelligence EFT analyst, who said that “This is something I’ve been looking for. Valkyrie is one of the only Bitcoin ETF filers from the recent past that hadn’t submitted a new 19b-4 in this wave.”
Some Considerations
Valkyrie is looking to enter the Bitcoin ETF market, but the final approval of its product will depend on the decisions of the SEC. So far, the regulatory agency has not approved any spot Bitcoin ETFs, but there has been a significant increase in filings in recent weeks.
Valkyrie’s attempt to list the shares of Valkyrie’s Bitcoin Fund on the Nasdaq is based on language included in BlackRock’s second filing attempt, specifically in regards to the Nasdaq’s surveillance swap deal with Coinbase.
Firms have sought to establish a spot Bitcoin ETF in the United States for a decade, as Gemini co-founder Cameron Winklevoss recently highlighted. But with BlackRock knocking on the SEC’s door, prominent figures in the crypto world such as Circle CEO Jeremy Allaire believe a regulatory green light is imminent.
In closing, only time will tell if the SEC leans towards approving a spot Bitcoin ETF, which could have a huge impact on the cryptocurrency market and investing in general.
By Audy Castaneda
