- Valkyrie Investments has resubmitted its application for a Bitcoin ETF with the support of Coinbase Global Inc., which will provide market surveillance to address SEC’s concerns regarding market manipulation and fraud.
- The new filing comes amid a trend of companies submitting applications for spot ETF products, following BlackRock’s mid-June filing, signaling growing optimism and market readiness for a Bitcoin ETF.
- Valkyrie is an experienced player in the crypto space, having launched a Bitcoin futures ETF in 2021, and its association with Coinbase in market surveillance could be a significant step toward satisfying SEC’s requirements for clarity and anti-fraud measures.
Valkyrie Investments, a Nashville-based firm, has resubmitted its application for a Bitcoin Exchange-Traded Fund (ETF). This followed the U.S. Securities and Exchange Commission (SEC) concerns regarding the sufficiency of the initial documents.
In a significant development, the updated filing highlights that Coinbase Global Inc. will be offering market surveillance for Valkyrie’s proposed Bitcoin fund. This move comes as the SEC has previously been critical of filings for lacking clarity in market surveillance and anti-fraud measures.
According to the documents filed on Wednesday, Nasdaq, which would be the exchange on which Valkyrie’s Bitcoin ETF would be listed upon approval, has executed a term sheet with Coinbase for a surveillance-sharing agreement as of June 30th. This surveillance agreement aims to significantly reduce market manipulation and fraud.
Both manipulation and fraud have been among the top concerns for the SEC, leading to the rejection of around 30 spot Bitcoin ETF applications to date. As for Valkyrie, it is no stranger to the crypto investment space.
It was one of the early issuers of a Bitcoin futures ETF in 2021 under the ticker BTF, known as the Valkyrie Bitcoin Strategy ETF. The inclusion of Coinbase in market surveillance is deemed pivotal, as Coinbase is a major player in the U.S. cryptocurrency market.
Ophelia Snyder, co-founder and president of 21Shares, noted that surveillance-sharing agreements are standard, but
“Coinbase represents such a large proportion of the U.S market for these products and is so well-established in this market that that’s actually the major difference.”
Furthermore, Valkyrie’s refiling coincides with a growing trend among financial firms that are either filing or refiling applications for spot ETF products. This trend was spurred by BlackRock’s mid-June filing, which not only ignited competition among issuers but also contributed to a cryptocurrency market rally.
With Bitcoin appreciating over 10% in the past month and more than 80% since the beginning of the year, there is a rising optimism that the SEC might alter its previous stance on Bitcoin ETFs.
This application resubmission is closely watched by the market, as the approval of a Bitcoin spot ETF could signify a watershed moment for the cryptocurrency industry by facilitating greater accessibility for everyday investors.