The Approval of Spot Bitcoin ETFs in the US is Imminent
The cryptocurrency industry is on the verge of a significant milestone as the first spot Bitcoin exchange-traded funds (ETFs) are expected to receive approval in the US. According to Valkyrie co-founder Steven McClurg, the Securities and Exchange Commission (SEC) is likely to give the green light on Wednesday, with trading commencing on Thursday.
Optimism Towards SEC Chair Gary Gensler
In an interview with Fortune, McClurg expressed optimism about the incoming spot Bitcoin ETFs. He believes that SEC Chair Gary Gensler has been favorable towards Bitcoin, evidenced by his approval of Bitcoin futures and Ether futures ETFs last year.
Competitors Racing to Launch Spot Bitcoin ETFs
Valkyrie is one of several competitors rushing to launch spot Bitcoin ETFs after years of setbacks and rejections by the SEC. The company submitted its application before the SEC’s deadline at the end of December.
Attracting Investors with Crypto Expertise
To attract investors, McClurg emphasizes Valkyrie’s expertise in the crypto industry compared to traditional financial giants entering the space. The provider already offers regulated ETFs focused on Bitcoin mining stocks and Bitcoin/Ether futures.
Cash Creation/Redemption Model for Spot Bitcoin ETFs
McClurg advocates for spot Bitcoin ETFs using a cash creation/redemption mechanism rather than the dominant in-kind model used in equity ETFs. He believes this approach will attract more authorized participants and contribute to healthy trading activity.
Hot Take: Expanding Access and Fueling Adoption
The imminent approval of spot Bitcoin ETFs marks a significant step towards expanding access and fueling adoption of Bitcoin among institutional and retail investors. With each ETF provider offering their unique value proposition, Valkyrie aims to become a preferred choice for crypto-focused investors in the emerging multi-billion dollar market.
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