The U.S. Securities and Exchange Commission (SEC) has officially acknowledged another Bitcoin Exchange-Traded Fund (ETF) proposal for regulatory review, marking another bullish signal for Bitcoin (BTC). This time, SEC acceptance comes for the financial services firm Valkyrie, which has adopted ‘BRRR’ as the ticker for its ETF.
Valkyrie Spot Bitcoin ETF Application Acknowledged By SEC
The U.S. SEC has accepted Valkyrie’s application for a spot Bitcoin ETF following its acknowledgement of similar applications by BlackRock and Bitwise in recent days.
The watchdog added Valkyrie’s proposal to launch the Valkyrie Bitcoin Fund to its official docket on Monday.
The SEC’s acknowledgement signifies the start of the official review process for Valkyrie’s ETF bid. With Valkyrie’s proposal now on the SEC’s official calendar, it will be published in the Federal Register and trigger a 21-day public comment period. While it’s an initial step in a long regulatory journey, it suggests the SEC’s willingness to explore the idea of a spot Bitcoin ETF and assess its potential effects on the market.
Valkyrie refiled paperwork with the SEC for its longstanding Bitcoin ETF proposal last month, just five days after BlackRock’s novel ETF submission. The Tennessee-based asset manager has selected ‘BRRR’ as the ticker symbol for its ETF — alluding to the popular meme that symbolizes the sound of money printing.
Valkyrie adjusted its spot Bitcoin ETF application on July 5 to include an agreement for “surveillance-sharing” with cryptocurrency exchange Coinbase, just like BlackRock. BlackRock, the world’s largest asset manager, banging on the SEC’s door is significant owing to its prominence in finance.
A spot Bitcoin ETF has been deemed a holy grail for the industry and would mirror the value of BTC without requiring institutional investors to store the asset themselves. It would also be tradable on a conventional stock exchange, much like shares in popular companies such as Apple and Microsoft.
Acceptance Bullish For Bitcoin Price
The SEC is also reviewing applications for funds, including Wise Origin Bitcoin Trust, WisdomTree Bitcoin Trust, VanEck Bitcoin Trust, and Invesco Galaxy Bitcoin ETF, which also entered a three-week comment period.
Going back to 2013, the SEC has long stonewalled proposals for a spot Bitcoin ETF. Nonetheless, the latest competition among firms vying to be the first to launch a Bitcoin ETF in the United States is seen by many as a bullish development for the crypto industry.
The potential SEC endorsement of a spot ETF would equate to a seal of approval for Bitcoin from the securities watchdog. Moreover, the regulatory green light would introduce a fresh capital inflow into the BTC market.