Valkyrie Digital Assets filed an application Friday for a bitcoin exchange trading fund (ETF), the second such filing in the past 30 days.
The Valkyrie Bitcoin Fund would be listed on the New York Stock Exchange and Coinbase Custody Trust Company, LLC would serve as custodian of the proposed ETF, according to Dallas-registered Valkyrie Investments, the parent of Valkyrie Digital Assets.
Leah Wald, CEO of Valkyrie Investments, told CoinDesk, “Our executive team has previously launched several ETFs, publicly traded funds, and ETPs, including bitcoin funds.”
Wald explains that the team behind the ETF includes, “Steven McClurg and John Key who together have worked on over 100 new and esoteric deals that have passed regulatory scrutiny.”
While ETFs are considered advantageous because it trades on the stock market in exactly the same way as shares in popular companies like Apple and Microsoft, over the years the US Securities and Exchange Commission has rejected bitcoin ETF offers due to concerns about market volatility. and handling industry.
Yet, there have been signs that the SEC is warming up to the idea. In October 2020, the then Chairman, Jay Clayton, who was seen by many as crying out for crypto, said the agency was still open to considering ETF proposals.
Now, with a new administration causing the guard change in the SEC, crypto advocates are widely hoping that such an ETF will be approved in 2021. Clayton officially quit his job last month he was replaced by Gary Gensler, widely seen as more pro-crypto than his predecessor.
Also adding to optimism is the departure of Dalia Blass this month, director of the SEC’s investment management division. Blass was the author of a 2018 letter within the SEC expressing concerns that the bitcoin market was neither large enough nor liquid enough to be ready for an exchange-traded product.
CORRECTION (January 23, 18:03 UTC: Changes to indicate that Valkyrie Investments is based in Dallas, not Valkyrie Digital Assets.