The United States Securities and Exchange Commission (SEC) has announced its acceptance of Valkyrie’s Bitcoin exchange-traded fund (ETF) proposal for official review. This development marks the second spot Bitcoin ETF proposal being considered by the SEC, following BlackRock’s proposal a few days earlier, media reports said.
Valkyrie, having previously faced regulatory challenges from the SEC, submitted their new proposal in late June 2023. The company’s previous attempt to list the Valkyrie Bitcoin Trust on the New York Stock Exchange was met with pushback. However, Valkyrie was able to launch a futures-based Bitcoin ETF in October 2021.
The SEC’s Nasdaq rulemaking list reveals that Valkyrie’s spot Bitcoin ETF proposal has officially entered the docket as of July 17. Matthew DeLesDernier, the SEC deputy secretary, highlighted in a statement that Nasdaq had refilled for a proposed rule change to allow the listing of Valkyrie’s spot Bitcoin ETF on July 3.
“The trust will only hold Bitcoin, and will, from time to time, issue baskets in exchange for deposits of Bitcoins and to distribute Bitcoins in connection with redemptions of baskets,” DeLesDernier explained.
The SEC has opened a 21-day comment period, until August 7, for the public to provide feedback on Valkyrie’s proposal. However, DeLesDernier stated that the SEC retains the right to approve or disapprove the rule change within a period of up to 45 days from the notice’s publication in the Federal Register, or within a longer period of up to 90 days.
Valkyrie’s renewed filing coincides with the resubmission of BlackRock’s spot Bitcoin ETF proposal on June 29, fostering a renewed sense of optimism. ARK Investment Management also submitted an application for a spot Bitcoin ETF in April, marking their third attempt to gain SEC approval.
With multiple companies vying to introduce spot Bitcoin ETFs, the crypto community eagerly awaits the SEC’s decision. The acceptance of these proposals for official review signals a significant development in the potential mainstream adoption of Bitcoin and other cryptocurrencies.
The growing interest in Bitcoin ETFs showcases the continuous evolution of the crypto market and the increasing acceptance of digital assets within traditional financial systems. As the SEC evaluates these proposals, the outcome will undoubtedly shape the future landscape of cryptocurrency investments in the United States.