Valkyrie Refiles Bitcoin ETF Application, Names Coinbase as Market Surveillance Provider

According to a recent Bloomberg story, Valkyrie has re-filed its application for a Bitcoin Spot ETF in order to obtain authorization to invest directly in Bitcoin. Coinbase has been selected by Valkyrie to serve as the market monitoring provider for the ETF in an effort to allay earlier concerns voiced by the US Securities and Exchange Commission (SEC).

Competition Heats Up for Bitcoin ETFs

Crypto market surveillance is essential to obtaining SEC clearance for a spot Bitcoin ETF. Due to worries about fraud and market manipulation, the SEC has denied a number of spot Bitcoin ETF applications. In the instance of Valkyrie, they have signed a term sheet with Nasdaq to create a surveillance-sharing arrangement with Coinbase, where they want to list if permitted.

A Bitcoin-futures ETF with the symbol BTF was originally introduced by Valkyrie, a pioneer in the Bitcoin sector, in 2021. However, once BlackRock filed for a comparable ETF in mid-June, causing a bitcoin rise, the race for Bitcoin ETF filings accelerated. Bitcoin has increased by over 10% only in the last month and by over 80% since the year’s commencement.

Analyst’s Perspective and Valkyrie’s Background

James Seyffart, an ETF analyst for Bloomberg Intelligence, took interest in Valkyrie’s latest proposal and noted that it is noteworthy among the current flurry of Bitcoin ETF applications. He said, “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.” A cryptocurrency asset management with its headquarters in Nashville, Tennessee, called Valkyrie specializes in financial services and solutions targeted at virtual currencies like Bitcoin and Ethereum.

Leah Wald and Steven McClurg, who have a wealth of expertise in asset management and financial services, founded Valkyrie in 2018. The company provides a variety of investing options, such as actively managed funds, passive funds, and futures-based products. To give investors access to the potential returns and diversification advantages of this new asset class, the business intends to provide regulated and safe exposure to digital assets.