- A Delaware-based subsidiary of Valkyrie Investments Inc. has filed an updated spot ETF proposal.
- With the move, Valkyrie has altered the intended exchange to Nasdaq and changed the ticker to $BRRR from $BRRNY.
- The Trust's investment objective is for the shares to reflect the performance of BTC value represented by CME CF.
- Firms appear to be taking advantage of the recent regulatory scrutiny to facilitate their entry into the market.
Bitcoin Exchange Traded Fund (ETF) is the current theme in the crypto market as institutional investors move to provide users with regulated options to participate in the BTC market. The trend has intensified so much that experts say it is the main driver behind the current Bitcoin (BTC) rally.
Bitcoin ETF narrative continues with a new addition to the chain of applicants
Bitcoin ETF narrative has sparked a remarkable surge in BTC, with Coinglass data showing that it inspired liquidations worth more than $82.67 million in short positions. Notably, this is the largest volume of shorts liquidated since May. BlackRock, the world's largest asset manager, applied for its Bitcoin spot Exchange Traded Fund on June 15, kickstarting a series of filings with two other large investment firms joining the queue, WisdomTree and Invesco.
In a recent development, Valkyrie has been added to the list with the investment firm's Delaware-based subsidiary filing an updated spot ETF proposal with the SEC, dubbed Valkyrie Bitcoin Fund. If approved, it would change the intended exchange to Nasdaq with the native token changing from Bitcoin Reference Rate – New York variant (BRRNY) to BRRR.
Noteworthy, Valkyrie already has a BTC futures ETF product listed on Nasdaq. However, as institutional interest grows amid regulatory clampdown, firms see an opportunity to enter the market. It signals firms recognizing the industry's demand for regulated investment products, and every stakeholder wants to capitalize on a 'first-mover advantage.'
Citing an excerpt from the application:
The shares are designed to provide investors with a cost-effective and convenient way to invest in Bitcoin. They [shares] represent units of fractional undivided beneficial interest in and ownership of the Trust.
According to the filing, Valkyrie Bitcoin Fund aims to "reflect the price of CME CF Bitcoin Reference Rate - New York Variant (BRRNY)." This figure is calculated based on trading data aggregated across multiple giant Bitcoin exchanges like Coinbase, Bitstamp, Gemini, itBit, Kraken, and LMAX Digital.
Valkyrie ETF changes relative to January 2021 filing
Valkyrie's latest filing presents several adjustments from the January 2021 filing, with the most pronounced ones being:
- Adjusting its ticker from BRRNY to BRRR
- Application to list on Nasdaq instead of the previous NYSE Arca
- Eliminating Coinbase Custody Trust Company as the custodian of Bitcoin associated with the fund. Notably, it featured in the 2021 filing.
The US SEC approving the application will see Valkyrie "issue an unlimited number of shares for the fund." With this, the price would then be revised daily around the time when Wall Street trading comes to a close, 4:00 to 4:30 pm ET.
Notwithstanding, the move by these institutional investors to file for spot Bitcoin ETFs underscores the increasing recognition of the potential of BTC in traditional finance. Their applications acknowledge the industry's demand for regulated investment vehicles and could pave the way for broader adoption.
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