Bitcoin coin with ETF text on stone background, Concept Entering the Digital Money Fund. ETF and Bitcoin cryptocurrency concept

The United States Securities and Exchange Commission (SEC) has taken Valkyrie’s Bitcoin exchange-traded fund (ETF) proposal for official review.

Valkyrie’s spot Bitcoin ETF filing, known as “BRRR” in reference to a popular Bitcoin community meme, entered the SEC’s Nasdaq rulemaking list on July 17, according to data from the SEC’s Nasdaq rulemaking list.

According to the SEC, “The purpose of the Trust is to provide investors with a cost-effective and convenient way to invest in bitcoin in a manner that is more efficient and convenient than the purchase of a stand-alone bitcoin, while also mitigating some of the risks by reducing the volatility typically associated with the purchase of stand-alone bitcoin.”

The statement comes shortly after formally listing BlackRock’s spot Bitcoin ETF proposal for review. This development reflects a burgeoning interest in exploring spot cryptocurrency-based financial products within the regulatory landscape.

Valkyrie’s proposal marks the second Spot Bitcoin ETF being considered by the SEC, following BlackRock’s filing on July 13

This filing represents Valkyrie’s second attempt to launch a spot Bitcoin ETF in the United States, as the family investment fund previously proposed the Valkyrie Bitcoin Trust’s listing on the New York Stock Exchange in January 2021. Despite regulatory pushback from the SEC, Valkyrie successfully launched a futures-based Bitcoin ETF in October 2021.

The revised proposal reaffirmed the potential viability of a spot Bitcoin ETF, stating:

“In its filing with the Commission, the Exchange included statements concerning the purpose of and basis for the proposed rule change and discussed any comments it received on the proposed rule change.”

In a notice attached to the filing, SEC deputy secretary Matthew DeLesDernier mentioned that Nasdaq refilled for a proposed rule change to allow the listing of Valkyrie’s spot Bitcoin ETF on July 3. 

Nasdaq filed a request for a rule change, stating, “The trust will only hold Bitcoin, and will, from time to time, issue baskets in exchange for deposits of Bitcoins and to distribute Bitcoins in connection with redemptions of baskets.”

Public Feedback Matters

During the 21-day comment period, which concludes on August 7, the public is encouraged to provide feedback on Valkyrie’s spot Bitcoin ETF proposal. The SEC will consider this input while reviewing and potentially approving or disapproving the proposed rule change. The regulatory body has up to 45 days from the notice’s publication in the Federal Register to make a decision. In certain cases, this review period may extend up to 90 days.

Valkyrie filed its latest Bitcoin ETF proposal in late June 2023, capitalizing on the renewed optimism surrounding spot BTC ETFs. The optimism was fueled by BlackRock’s refiling of its spot BTC ETF on June 29. ARK Investment Management also joined the fray by submitting an application for a spot Bitcoin ETF in April, marking their third attempt to gain SEC approval for such a product.

Valkyrie’s “BRRR” spot Bitcoin ETF filing has entered a new phase as the SEC commences its official review. With BlackRock and ARK Investment Management also vying for approval, the potential launch of spot Bitcoin ETFs in the United States appears to be gaining momentum. The community eagerly awaits the SEC’s decision and the subsequent impact it may have on the cryptocurrency market.

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