SEC records Valkyrie's proposal for Spot-Bitcoin-Exchange Traded Fund in exams

SEC records Valkyrie's proposal for Spot-Bitcoin-Exchange Traded Fund in exams

The Securities and Exchange Commission (SEC) has included Valkyrie's proposal for a spot bitcoin-exchange-trading find (ETF) in its formal test process. This proposal was submitted at the beginning of July and bears the proposed ticker symbol "Brrr". Valkyrie intends to offer investors an inexpensive and convenient way to invest in Bitcoin that is more efficient and convenient than buying an independent bitcoin. In addition, the ETF should reduce part of the risk and volatility, which are normally connected to the purchase of Bitcoin.

The announcement of the SEC takes place shortly after you listed the Spot-Bitcoin ETF proposal from Blackrock for the exam. This shows a growing interest in researching financial products based on spot cryptocurrencies. Valkyrie is an established actor in the ETF area and had already proposed a leverage Bitcoin Futures ETF in October 2021, which was, however, blocked. However, the company started on October 22, 2021 a Bitcoin-ETF.

The revision of the Valkyrie proposal confirms the potential of a spot BTC ETF and explains that the SEC may drive a change of control. Nasdaq supported Valkyries Spot-Bitcoin ETF and called for a change of standard that enables the listing. The trust will only hold bitcoin and occasionally output baskets against Bitcoin deposits and distribute bitcoins.

In the coming weeks, public comments on Valkyrie's proposal will be obtained. This window for comments lasts 21 days and ends on August 7th. After the release has been published, the SEC will comply with an examination period of up to 45 days, possibly even longer, up to 90 days to make a decision on the proposed change of control.

A spot bitcoin ETF would enable investors to participate in the performance of Bitcoin without having to buy Bitcoin themselves. This could be attractive for many investors, as it would be easier and cheaper to invest in the ETF. In addition, the ETF would reduce the risk and volatility, which are usually associated with the direct purchase of Bitcoin. The inclusion of the Valkyrie proposal in the formal test process of the SEC shows that the authority is open to the introduction of spot bitcoin ETFs and the potential recognizes that these products can expand the market and strengthen the trust of investors. Now we have to wait and see which decision the SEC will make after its exam.