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2021 has been an explosive year for bitcoin, with the crypto asset reaching new all-time highs in price as cryptocurrencies have seen increased demand. Meanwhile, a number of crypto promoters expect the first exchange-traded fund (ETF) to be approved this year as a number of companies rush to launch an ETF. Texas-based Valkyrie Digital Assets filed an ETF registration proposal called Valkyrie Bitcoin Trust on Friday in hopes of listing the fund on the New York Stock Exchange (NYSE).
Crypto Promoters Expect US Bitcoin Exchange Traded Fund Approval This Year
This year may well be the year that U.S. regulators approve a Bitcoin (BTC) -based exchange-traded fund (ETF) hosted on a major exchange. For example, in December, news.Bitcoin.com reported on Vaneck’s Bitcoin-based ETF filing with the United States Securities and Exchange Commission (SEC).
This week, Vaneck too deposit for another exchange-traded fund called Digital Asset ETF, which aims to own stocks in companies that generate income through cryptocurrency services. Meanwhile, at the same time, Canadian investment fund manager Arxnovum Investments deposit for a Bitcoin-based ETF with the Ontario Canadian Securities Commission
Now another company has joined the Bitcoin ETF race as Texas-based company Valkyrie Digital Assets signed up for a bitcoin fund on Friday, January 22. Valkyrie notes in the filing that the trust intends to list the shares on NYSE Arca. After the deposit was made public, crypto promoters discussed the ETF’s new entry on social media. For example, CFA crypto James Seyffart, talked about the ETF registration of Valkyrie and he 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. Viewing a list of all companies applying for Seyffart Exchange Traded Fund further wrote: The current state of the Bitcoin ETF race with a late newcomer. Important Note: As far as I know, no 19b-4s have been filed, which are the filings that start this 240 day clock for the SEC to make a decision. Seyffart added:
I cran my neck a bit – I think we’ll see a US Bitcoin ETF in 2021 if Gensler is confirmed to run the SEC. The guy is extremely knowledgeable about Blockchain / Crypto. He even teaches a course at MIT on the subject. Having said that, I think you can expect further regulations from the SEC in the crypto space. Don’t think we’ll see outright bans like some Bitcoin bears like to claim. But we’ll definitely see more scrutiny and regulation, as Mike McGlone has also said.
Valkyrie insists an ETF is a profitable and convenient way to invest in Bitcoin
Valkyrie believes the ETF will provide investors with a more accessible method to invest in BTC. “The purpose of the trust is to hold bitcoin, which is a digital commodity based on cryptographic protocols used by the decentralized peer-to-peer bitcoin computer network,” the Valkyrie file states.
The Valkyrie ETF filing highlights that investing in the trust involves significant risks. Valkyrie’s bitcoin fund registration further emphasizes that the fund may not be suitable for shareholders who cannot accept more risk.
“The investment objective of the trust is for stocks to reflect the performance of the value of a bitcoin as represented by the index, less the liabilities and expenses of the trust. The shares are designed to provide investors with an economical and convenient way to invest in bitcoin, ”the investment firm’s record adds.
Do you think regulators will approve a Bitcoin ETF in 2021? Let us know in the comments section below.
Image credits: Shutterstock, Pixabay, Wiki Commons, ETF Valkyrie Repository, NASCAR
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