2021 was an explosive year for bitcoin as the crypto asset has once hit new price heights as the demand for cryptocurrencies has increased. Meanwhile, a number of crypto advocates are expecting the first exchange-traded fund (ETF) to be approved this year as a number of companies rush to launch an ETF. On Friday, Texas-based company Valkyrie Digital Assets filed an ETF registration proposal called the Valkyrie Bitcoin Trust, with hopes of listing the fund on the New York Stock Exchange (NYSE).
Crypto advocates expect Bitcoin Exchange-Traded Fund approval in the US this year.
This year may well be the year when US regulators approve a bitcoin (BTC) based Exchange Traded Fund (ETF) hosted on a major stock exchange. For example, in December, news.Bitcoin.com reported Vaneck’s bitcoin-based ETF filing with the US Securities and Exchange Commission (SEC).
This week also Vaneck archived for another exchange-traded fund, the Digital Asset ETF, which aims to hold shares in companies that generate revenue from cryptocurrency services. Meanwhile, at the same time, Canadian investment fund manager Arxnovum Investments archived for a bitcoin-based ETF with Canada’s Ontario Securities Commission.
Now, another company has joined the bitcoin ETF race as Texas-based company Valkyrie Digital Assets registered for a bitcoin fund on Friday, January 22. Valkyrie notes in the filing that the trust plans to list the shares on NYSE Arca. After the filing went public, crypto advocates discussed the new ETF listing on social media. For example, crypto CFA James Seyffart spoke of Valkyrie’s ETF registration and told his 3,800 Twitter followers that he expects a bitcoin ETF approval this year.
“And there is another participant in the Bitcoin ETF Race,” Seyffart said. Display a list of all companies applying for a publicly traded Seyffart fund onwards wrote: The current state of the Bitcoin ETF race with a new late entrant. Important note: As far as I can tell, No. 19b-4’s have been filed, which are the filings that start the 240-day clock for the SEC to make a decision. Seyffart added:
I’m sticking my neck out a bit – I think we’ll see a US Bitcoin ETF in 2021 when it is confirmed that Gensler controls the SEC. The man is extremely knowledgeable about Blockchain / crypto. He even teaches at MIT on the subject. That said, I think you can expect new regulations to come to the crypto space from the SEC. Don’t think we’ll see outright bans, as some bitcoin bears like to claim. But we will certainly see more scrutiny and regulation, as Mike McGlone has also stated.
Valkyrie emphasizes that an ETF is a cost-effective and convenient way to invest in Bitcoin
Valkyrie believes the ETF will provide investors with a more accessible method of investing BTC. “The purpose of the trust is to hold bitcoins, which is a digital commodity based on the cryptographic protocols used by the decentralized, peer-to-peer bitcoin computer network,” said Valkyrie’s applicant.
The Valkyrie ETF filing emphasizes that an investment in the trust carries significant risks. Valkyrie’s bitcoin fund registry further highlights that the fund may not be suitable for shareholders who cannot accept more risk.
The trust’s investment goal is for the stock to reflect the performance of a bitcoin’s value as represented by the index, minus the trust’s liabilities and costs. The shares are designed to provide investors with a cost-effective and convenient way to invest in bitcoin, ”adds the investment company’s registry.
Do you think regulators will approve a bitcoin ETF in 2021? Let us know in the comments below.
Image Credits: Shutterstock, Pixabay, Wiki Commons, The Valkyrie ETF filing, NASCAR
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