In an update on X, Valkyrie Funds files new S-1
Bloomberg Intelligence analyst James Seyffart reports that Valkyrie Funds has filed a new S-1 at 6:01 a.m. today. This move follows the lead of Bitwise and Invesco, focusing on cash-only creations and redemptions.
Looking ahead
Similar to Invesco, the filing expresses a desire to transition to in-kind transactions when regulations allow. However, the SEC’s stance could impact the tax efficiency of spot ETFs, as highlighted by Seyffart in response to concerns raised by North Rock Digital.
Seyffart acknowledges the surge in inquiries and emphasizes that potential capital gains distributions may be less tax-efficient, similar to mutual funds operating on a cash-create and redeem model. However, he believes that the impact may not be as detrimental as some in the community suggest.
Busy for the holidays
As the holiday season approaches, the SEC remains actively engaged. Four different issuers, including BlackRock, have recently held meetings with the SEC to discuss their Bitcoin ETF filings. BlackRock has met with the SEC for the third time, according to a report on December 12th. Grayscale, Franklin, and Fidelity had meetings with the regulatory entity a week earlier.
Hot Take: SEC Engaged in Discussions with Bitcoin ETF Filings
The SEC’s engagement in discussions with various issuers regarding Bitcoin ETF filings indicates continued interest and consideration of cryptocurrency-related investment products. While there are differing opinions on Twitter about the impact of cash-only creations and redemptions on tax efficiency, it remains important to monitor regulatory developments closely. As we enter the holiday season, it will be interesting to see how these discussions progress and if any new developments arise. The outcome of these discussions could have significant implications for the future of Bitcoin ETFs and their tax implications.
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