2021 was an explosive year for bitcoin as the crypto asset touched new highs of all time as cryptocurrencies had greater demand. Meanwhile, a number of crypto advocates expect the first exchange traded fund (ETF) to be approved this year, as a number of companies will start an ETF. Texas-based firm Valkyrie Digital Assets on Friday filed an ETF listing proposal called the Valkyrie Bitcoin Trust in hopes of listing the fund on the New York Stock Exchange (NYSE).
Crypto advocates expect Bitcoin exchange-traded fund approval this year
This year may just be the year in which U.S. regulators approve an exchange-traded fund (ETF) with bitcoin (BTC) offered on a major stock exchange. For example, in December, news.Bitcoin.com report about Vaneck’s bitcoin-based ETF filing with the U.S. Securities and Exchange Commission (SEC).
Vaneck also this week submitted for another exchange-traded fund called the Digital Asset ETF, which aims to hold shares in companies that earn revenue from cryptocurrency services. Meanwhile, at the same time, Canadian investment fund manager Arxnovum Investments submitted for a bitcoin-based ETF with Canada’s Ontario Securities Commission.
Now another company has joined the bitcoin ETF race as Texas-based firm Valkyrie Digital Assets registered for a bitcoin fund on Friday, January 22nd. Valkyrie notes that the trust intends to list the shares on NYSE Arca. After the submission was made public, crypto advocates discussed the new ETF entry on social media. Crypto CFA James Seyffart, for example, talked about Valkyrie’s ETF registration and he told his 3,800 Twitter followers he expects a bitcoin ETF approval this year.
“And there’s another participant in the Bitcoin ETF Race,” Seyffart said. Also show a list of all the companies that submit an exchange traded fund Seyffart wrote: The current state of the Bitcoin ETF race with a new late entrant. Important note: as far as I know no 19b-4s have been submitted, these are the documents that start the 240 day long clock for the SEC to make a decision. Seyffart added:
To stick my neck out – I think we will see a US Bitcoin ETF in 2021 if it is confirmed that Gensler manages the SEC. The man is very knowledgeable about Blockchain / crypto. He even gives a class at MIT on the subject. That said, I think you can expect new regulations from the SEC into the crypto space. Do not think that we will see absolute ban provisions as some bitcoin bears would like to claim. But we will certainly see increased scrutiny and regulation, as Mike McGlone also said.
Valkyrie insists that an ETF is a cost-effective and convenient way to invest in Bitcoin
Valkyrie believes that the ETF will provide investors with a more accessible method of investing in BTC. “The purpose of the trust is to own bitcoins, which is a digital commodity based on the cryptographic protocols used by the decentralized, peer-to-peer bitcoin computer network,” reads the Valkyrie submission.
The Valkyrie ETF submission emphasizes that investing in the trust poses significant risks. Valkyrie’s registration of bitcoin funds further emphasizes that the fund may not be suitable for shareholders who can no longer accept risks.
‘The investment objective of the trust is that the shares reflect the performance of the value of a bitcoin, as represented by the index, minus the liabilities and expenses of the trust. The shares are designed to provide investors with a cost-effective and convenient way to invest in bitcoin, “adds the investment firm’s registration.
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 Submission, NASCAR
Disclaimer: This article is for information only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services or companies. Bitcoin.com does not provide investment, tax, legal or accounting advice. Neither the company nor the author is directly or indirectly responsible for any damage or loss caused or alleged to be caused by or in connection with the use or reliance on any content, goods or services mentioned in this article.