Valkyrie Digital Assets filed an application for a Bitcoin Exchange Traded Fund (ETF) on Friday, the second such application in the last 30 days.
The Valkyrie Bitcoin Fund would be listed on the New York Stock Exchange and Coinbase Custody Trust Company, LLC would act as the custodian for the proposed ETF, according to Dallas-registered Valkyrie Investments, the parent company of Valkyrie Digital Assets.
Leah Wald, CEO of Valkyrie Investments, told CoinDesk, “Our executive team has previously launched several ETFs, publicly traded funds and ETPs, including Bitcoin funds.”
Wald explains that the team behind the ETF includes: “Steven McClurg and John Key who worked together on over 100 esoteric and novel deals that passed government scrutiny.”
While an ETF is seen as beneficial because it trades on the stock exchange similar to stocks of popular companies like Apple and Microsoft, the U.S. Securities and Exchange Commission has over the years rejected proposals for Bitcoin ETFs due to concerns about market volatility and manipulation of the market Industry.
Still, there were signs that the SEC is warming to the idea. In October 2020, then-chairman Jay Clayton, whom many viewed as lukewarm to crypto, stated the agency was still open to considering ETF proposals.
Now that a new government is changing the guard at the SEC, crypto proponents are largely hoping that such an ETF will be approved in 2021. Clayton officially resigned last month, replacing Gary Gensler, who is widely seen as more pro-crypto than his predecessor.
The departure of Dalia Blass, director of the SEC’s investment management division, this month also adds to optimism. Pale was the author of a 2018 letter from the SEC expressing concerns that the Bitcoin market was not big enough or liquid enough to be ready for a publicly traded product.
CORRECTION (January 23, 18:03 UTC: Changes to note that Valkyrie Investments is based in Dallas and not Valkyrie Digital Assets.