July 5, 2023 at 16:35 GMTModified date: July 5, 2023 at 16:35 GMT
July 5, 2023 at 16:35 GMT

Valkyrie re-files for spot Bitcoin ETF

Valkyrie has re-submitted its application for a spot Bitcoin ETF to the SEC, partnering with Coinbase for a Surveillance Sharing Agreement (SSA).

Valkyrie re-files for spot Bitcoin ETF

Crypto-focused hedge fund manager Valkyrie has taken a step forward by re-submitting its application for a spot Bitcoin ETF to the US Securities and Exchange Commission (SEC). In the latest filing, the company has added Coinbase as its Surveillance Sharing Agreement (SSA) partner.

This strategic addition aligns with the SEC’s stipulations, as it serves as an effective measure to safeguard against market manipulation and ensures compliance with regulatory requirements.

The race for a spot Bitcoin ETF has further intensified, with Blackrock, Invesco and Wisdom Tree refiling with the SEC, after the regulatory watchdog said that their initial applications contained “inadequacies”.

According to the prospectus summary of the initial filing, the ETF will have the ticker ‘BRRR’ and is expected to trade on the Nasdaq stock market if approved.

“The Shares represent units of fractional undivided beneficial interest in and ownership of the Trust and are expected to be traded under the ticker symbol ‘BRRR’ on the The Nasdaq Stock Market, LLC (“Nasdaq”). The Trust issues Baskets of Shares to Authorized Participants on an ongoing basis in exchange for bitcoins that are deposited for safekeeping with the Custodian,” the filing reads.

With its new submission, Valkyrie rejoins the race, and looks to add yet another Bitcoin-related ETF to its service offering after its XBTO Bitcoin Futures Fund was approved in May 2022. The ETF became only the second futures Bitcoin ETF to receive SEC’s coveted rubber stamp at the time, and it heightened expectations for a spot equivalent. 

Following the approval, Bitcoin Futures Fund (XBTO), Chief Investment Officer Steven McClurg was quoted by Blockworks as saying: “As for a spot Bitcoin ETF, we do believe that today’s news puts us closer to an eventual approval, but would hesitate to put a timeline on such a decision and are instead keen to continue working with regulators to help further satisfy warranted concerns and collaboratively work towards progress in this rapidly evolving asset class.” 

Despite facing rejections in the past, there is a palpable sense of optimism for the fund manager as they resubmit their spot Bitcoin ETF application as this particular attempt holds promise for a different result.

Bloomberg ETF Analyst Eric Balchunas points out that Valkyrie has taken a more assertive and proactive approach by re-filing their 19b-4 submission and explicitly mentioning their Surveillance Sharing Agreement (SSA) with Coinbase.

He also notes that Valkyrie’s language, particularly their use of terms like “executed” and “agreement,” suggests a heightened level of aggression and determination in their application.