- A Delaware-based subsidiary of Valkyrie Investments Inc. has filed an updated spot ETF proposal.
- With the move, Valkyrie has altered the intended exchange to Nasdaq and changed the ticker to $BRRR from $BRRNY.
- The Trust's investment objective is for the shares to reflect the performance of BTC value represented by CME CF.
- Firms appear to be taking advantage of the recent regulatory scrutiny to facilitate their entry into the market.
Bitcoin Exchange Traded Fund (ETF) is the current theme in the crypto market as institutional investors move to provide users with regulated options to participate in the BTC market. The trend has intensified so much that experts say it is the main driver behind the current Bitcoin (BTC) rally.
Also Read: Bitcoin price breaches $30,000 on Binance, three catalysts power mega rally
Bitcoin ETF narrative continues with a new addition to the chain of applicants
Bitcoin ETF narrative has sparked a remarkable surge in BTC, with Coinglass data showing that it inspired liquidations worth more than $82.67 million in short positions. Notably, this is the largest volume of shorts liquidated since May. BlackRock, the world's largest asset manager, applied for its Bitcoin spot Exchange Traded Fund on June 15, kickstarting a series of filings with two other large investment firms joining the queue, WisdomTree and Invesco.
In a recent development, Valkyrie has been added to the list with the investment firm's Delaware-based subsidiary filing an updated spot ETF proposal with the SEC, dubbed Valkyrie Bitcoin Fund. If approved, it would change the intended exchange to Nasdaq with the native token changing from Bitcoin Reference Rate – New York variant (BRRNY) to BRRR.
Noteworthy, Valkyrie already has a BTC futures ETF product listed on Nasdaq. However, as institutional interest grows amid regulatory clampdown, firms see an opportunity to enter the market. It signals firms recognizing the industry's demand for regulated investment products, and every stakeholder wants to capitalize on a 'first-mover advantage.'
Citing an excerpt from the application:
The shares are designed to provide investors with a cost-effective and convenient way to invest in Bitcoin. They [shares] represent units of fractional undivided beneficial interest in and ownership of the Trust.
According to the filing, Valkyrie Bitcoin Fund aims to "reflect the price of CME CF Bitcoin Reference Rate - New York Variant (BRRNY)." This figure is calculated based on trading data aggregated across multiple giant Bitcoin exchanges like Coinbase, Bitstamp, Gemini, itBit, Kraken, and LMAX Digital.
Valkyrie ETF changes relative to January 2021 filing
Valkyrie's latest filing presents several adjustments from the January 2021 filing, with the most pronounced ones being:
- Adjusting its ticker from BRRNY to BRRR
- Application to list on Nasdaq instead of the previous NYSE Arca
- Eliminating Coinbase Custody Trust Company as the custodian of Bitcoin associated with the fund. Notably, it featured in the 2021 filing.
The US SEC approving the application will see Valkyrie "issue an unlimited number of shares for the fund." With this, the price would then be revised daily around the time when Wall Street trading comes to a close, 4:00 to 4:30 pm ET.
Notwithstanding, the move by these institutional investors to file for spot Bitcoin ETFs underscores the increasing recognition of the potential of BTC in traditional finance. Their applications acknowledge the industry's demand for regulated investment vehicles and could pave the way for broader adoption.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Celebrity meme coins controversy continues amid Pump.fun revenue dominance
Pump.fun outperformed the Ethereum blockchain on Tuesday after raking in $1.99 million. Following this achievement, a meme coin based on actress Sydney Sweeney was the subject of controversy after its developers dumped their bags on investors.
PEPE's on-chain metrics indicate potential rally after weeks of silence
PEPE has struggled to see any significant price move after reaching an all-time high in May. Increased adoption rate and low MVRV ratio indicate a bullish run may be on the horizon. A single PEPE outflow from Binance worth $14.7 million gives credence to signs of bullish expectation.
Ethereum has failed to overcome key resistance despite bullish sentiment surrounding ETH ETF
Ethereum (ETH) is down more than 1.4% on Tuesday following another ETH sale from the Ethereum Foundation. Meanwhile, crypto exchange Gemini's recent report reveals that ETH ETF could see about $5 billion in net inflows within six months of launch.
Crypto community blasts Polkadot following report of treasury spending
Polkadot reports $87 million of treasury spending during H1. Crypto community members expressed harsh feelings toward the DOT team's high spending. DOT is up more than 2% in the past 24 hours but risks correction following the report.
Bitcoin: BTC price correction could end in July, according to seasonal data
Bitcoin (BTC) price appears poised for a decline this week, influenced by slight outflows in US spot ETFs, selling activity among BTC miners, and a combined transfer of 4,690.28 BTC to centralized exchanges by the US and German governments.