Valkyrie has recently submitted a Form 497 outlining its plan to convert its existing Bitcoin Technique exchange-traded fund (BTF) into a dual Bitcoin and Ether exchange-traded fund (ETF) on October 3. However, some financial experts are questioning this decision, as it involves transforming the current futures fund rather than establishing an entirely new business. It is speculated that the regulatory procedures set by the U.S. Securities and Exchange Commission (SEC) leave little room for deviation from the established deadline.
Bloomberg ETF analyst Eric Balchunas draws a parallel between Valkyrie’s move and the first marijuana ETF, MJ, which also sought to gain market share. The decision comes in the wake of BlackRock’s successful Bitcoin ETF proposal approval on July 13. The growing focus on ETF proposals from the regulatory body, particularly in the Bitcoin sector, indicates the importance and potential of such investment vehicles.
Valkyrie’s Bitcoin (BTC) Miners ETF has emerged as a leader among cryptocurrency exchange-traded funds (ETFs) in 2023. As of July 27, the fund had $24 million in assets under management and achieved an impressive 261% year-to-date return.
Valkyrie, led by CEO Leah Wald, could become the first fund to succeed if granted approval by the SEC. Other applicants vying for ETF approval include ProShares, VanEck, Grayscale, and Bitwise.
The early introduction of the Bitcoin and Ether ETF is an exciting development for the market as the cryptocurrency sector continues to evolve.
The current trend of ETFs in 2023 reflects the increasing popularity of cryptocurrencies and other digital assets. In fact, all of the top 10 ETFs for the year are focused on cryptocurrencies, further highlighting the potential of ETFs in the cryptocurrency market.
Several well-known financial firms, including BlackRock, ARK Invest, Fidelity Investments, WisdomTree, VanEck, and Invesco, are currently seeking approval for their spot bitcoin ETFs.