Valkyrie Investments, a Tennessee-based asset manager with over $1 billion in AUM, has joined the race for a cryptocurrency ETF approval in an unusual way. At the same time, a similar procedure led to success at least once, Bloomberg ETF analyst recalls.
Valkyrie plans to reintroduce its popular BTF product as Bitcoin + Ether ETF
U.S.-headquartered asset management giant Valkyrie filed with the Securities and Exchanges Commission to change the name of its Bitcoin Strategy ETF. The new product, dubbed Valkyrie Bitcoin and Ether Strategy ETF, is set to provide investors with exposure to a combination of Bitcoin (BTC) and Ethereum (ETH) futures.
INTERESTING: Valkyrie just filed a 497 that they plan to convert $BTF into a Bitcoin + Ether ETF on Oct 3rd, which would would be two wks ahead of the other 13 filers scheduled launch. We'll see if this flies. Something similar happened back in day with $MJ, the first pot ETF https://t.co/Ypnien30ED pic.twitter.com/W9WiU2xc0W
— Eric Balchunas (@EricBalchunas) August 4, 2023
Eric Balchunas, senior ETF analyst at Bloomberg, pointed out that this is the 14th cryptocurrency ETF request submitted to be reviewed by the SEC.
As covered by U.Today previously, currently, six investing moguls — Volatility Shares, Bitwise, Roundhill, VanEck, ProShares and Grayscale — are waiting for the SEC's verdicts on Ethereum-based ETF products.
All of them should be informed about the approval or rejection of the ETFs by the SEC by mid-October 2023. However, for the potential Valkyrie Bitcoin and Ether Strategy ETF, the deadline arrives Oct. 3.
Balchunas also recalled a precedent when regulators greenlit the branding of a Latin America REIT ETF being changed into a medical cannabis stocks ETF.
What does potential Bitcoin ETF approval mean for industry?
This eccentric "exposure twist" was initiated by ETF Managers Group (ETFMG) in Q3, 2017.
The Bitcoin ETF filings race is among the most important catalysts for the cryptocurrency market growth in Q2-Q3, 2023. It started with the announcement of BlackRock Bitcoin ETF filing. BlackRock is the largest asset manager in the world with $10 billion in AUM.
Fidelity, WisdomTree, VanEck and Invesco/Galaxy accompanied BlackRock in the pursuit of the status of the first spot Bitcoin ETF operator. Some analysts are sure that a Bitcoin ETF will be launched by the end of 2023.
Besides a massive liquidity inflow, this approval can result in striking growth of trust in digital tokens as a new asset class.
Alex Dovbnya
Valeria Blokhina
Denys Serhiichuk
