In a step that can give seasoned investors memories of 2018, Valkyrie Digital Assets is the newest asset management firm to file with the SEC to create a Bitcoin Exchange Traded Fund (ETF). An offer that joins a crowded field of potential fund managers looking to capitalize on retailers’ renewed interest in cryptocurrencies.
The Texas mutual fund family launched on Friday proposed listing the Valkyrie Bitcoin Trust on the New York Stock Exchange. The application did not contain a possible stock symbol.
However, if history has taught us anything, the chances of filing the application that leads to an ETF are slim. During Bitcoin’s last bull run, several companies tried at least one leap on the plate nine companies filing proposals for a Bitcoin ETF with the SEC, including exchange traded giants VanEck and Direxion, as well as Twins, the cryptocurrency services company founded by the Winklevoss twins.
In a previous interview with Cointelegraph Donnie Kim, CEO of Cryptoin, whose company applied for a BTC ETF in October 2019, He said the SEC has long hesitated to approve such proposals.
“Right now the Commission is listening and learning about this new asset class and is on hold, partly to understand the ramifications of existing products in the market and elsewhere and to seek new avenues in the current political landscape,” Said Kim.
Despite the Commission’s historical reluctance with increasing retail interest in cryptocurrencies Fund managers are calling again to be the first to offer a BTC ETF.
On Thursday January 21st, the gold ETF giant VanEck (which was the first company to submit a BTC ETF) filed an application to create an ETF for digital assets. This would track the performance of the global digital asset equity index designed for cryptocurrency service providers.
While US Bitcoin ETFs have been hard to come by, other products traded are thriving. Options for traders include a Swiss Bitcoin ETP, a variety of grayscale products that could be expanded to include Chainlink in the coming months, and an Ethereum ETF in Canada, which proved so popular that trading will be suspended at launch had to.