Application for a Spot Bitcoin Exchange-Traded Fund
Recently, Steven McClurg, the co-founder and Chief Investment Officer of Valkyrie Investments, discussed the company’s application for a spot Bitcoin Exchange-Traded Fund (ETF) in the United States on CNBC Crypto World with Talia Kaplan. Valkyrie aims to obtain approval, along with other prominent asset managers.
Anticipated Approval of Spot Bitcoin ETF
McClurg has high hopes for the approval of Valkyrie’s spot Bitcoin ETF application and is optimistic about potential approval between January and March of the coming year. Valkyrie is diligently preparing for the necessary steps, such as setting up a fund administrator, custodian, and market makers.
SEC’s Stance on Crypto and ETFs
McClurg positively highlighted SEC Chair Gary Gensler’s stance towards Bitcoin and the crypto industry, including the launch of the first Bitcoin Futures ETF under Gensler’s guidance. He also noted a recent court victory of Grayscale against the SEC that could impact the decision-making process regarding spot Bitcoin ETFs.
Interaction with the SEC
Valkyrie regularly communicates with the SEC staff, aiming to ensure effective market functioning and comprehensive disclosures in their filings. McClurg expects the launch of the spot Bitcoin ETF after January 2nd, pending the SEC’s readiness.
Impact of Spot Bitcoin ETFs on Crypto Market
McClurg believes the approval of spot Bitcoin ETFs will significantly benefit Bitcoin, distinguishing it from other cryptocurrencies, some of which the SEC still views as potentially being securities.
Influence of BlackRock’s Filing
Valkyrie’s decision to file for a spot Bitcoin ETF was independent of BlackRock’s similar move. Valkyrie had initially filed for a spot Bitcoin ETF in early 2021 and has been actively working on it since then.
Market Dynamics and Bitcoin’s Price Movement
McClurg identified three key factors influencing Bitcoin’s price: spot ETF excitement, the cyclical nature of the Bitcoin industry, and expectations of lower interest rates in the near future. He anticipates the Federal Reserve might cut rates around May, potentially boosting risk markets.
Outlook for Bitcoin and Crypto in 2024
McClurg is optimistic about Bitcoin’s future and predicts its price could exceed $100,000 by the end of the next year and potentially reach $150,000 by 2025. He expects increased adoption and innovation in the Bitcoin network and the broader crypto market.
Valkyrie’s Future Plans and CoinShares Partnership
Valkyrie is preparing for the potential launch of a Bitcoin spot ETF and is also exploring other opportunities in the crypto space. The recent announcement of CoinShares’ intention to acquire Valkyrie’s crypto ETF wing is seen as a strategic partnership, leveraging CoinShares’ experience as the first Bitcoin ETF issuer in Europe.
Hot Take: A Look into the Future of Crypto Investments
Steven McClurg’s remarks on Valkyrie’s spot Bitcoin ETF application and positive outlook on cryptocurrency investments demonstrate the potential for growth and innovation in the crypto market. The anticipated regulatory approval and strategic partnerships hint at a promising future for crypto investments, paving the way for increasing adoption and value appreciation in the coming years.
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