Valkyrie Investments is one of the leading contenders for launching a spot Bitcoin ETF in the U.S. The firm’s CIO, Steven McClurg, is confident that the SEC will approve their proposal by the end of November 2023.
A spot Bitcoin ETF would allow investors to buy and sell the actual cryptocurrency, rather than futures contracts or trusts. This would provide a more direct and convenient way to access the world’s largest digital asset.
However, the SEC has been cautious about approving such products, citing concerns about market manipulation, custody, and investor protection. The regulator has delayed or rejected several applications from various firms, including BlackRock, Fidelity, VanEck, and Invesco.
Valkyrie has been working closely with the SEC to address these issues and update its application. The firm recently filed an S-1 registration statement, indicating that its fund shares would trade on the Nasdaq under the ticker “BRRR”.
McClurg believes that the SEC has been more receptive and collaborative with the crypto industry, and that the growing adoption and understanding of cryptocurrencies among institutional investors will pave the way for a spot Bitcoin ETF.
He also predicts that the market for Bitcoin could grow exponentially if a spot Bitcoin ETF is approved, as it would attract more capital from pension funds and other professional money managers. He estimates that a spot Bitcoin ETF could see $10 billion of inflows within the first few months, and $50 billion over five years.