Valkyrie Asset Management, a digital asset investment firm, has filed for a Bitcoin ETF with the U.S. Securities and Exchange Commission (SEC). The proposed ETF, which would be called the Valkyrie Bitcoin Strategy ETF, would track the performance of Bitcoin futures contracts. Ticker: $BRRR

This is the second time that Valkyrie has filed for a Bitcoin ETF. The first filing was rejected by the SEC in 2021. They now join BlackRock, Invesco, WisdomTree, and Bitwise with new ETF filings.

Over the last few years, Bitcoin has become the most talked-about asset in the world, with investors showing an unprecedented interest in the cryptocurrency. Recently, Valkyrie Asset Manager made headlines by filing with the SEC to launch the Valkyrie Bitcoin Trust, a Bitcoin ETF. This move along with hedge fund giant Blackrock has generated a lot of buzz in the investment community and is a big win for the cryptocurrency world. This post will analyze Valkyrie’s move and what it means for the cryptocurrency market.

What is a Bitcoin ETF?

Generally speaking, an ETF is an investment vehicle that allows investors to trade assets like stocks, bonds, and commodities. In the cryptocurrency world, a Bitcoin ETF would act as a means by which investors can gain exposure to Bitcoin without having to actually purchase and store it. This means that investors can buy and sell Bitcoin ETFs as they would any other security, such as a stock, on regulated exchanges.

Why are we not seeing Bitcoin ETFs everywhere?

While we have seen Bitcoin ETFs proposed and discussed in the past, none have been approved for launch. In 2018, the SEC expressed their concerns and stated that Bitcoin ETFs needed to be launched on national exchanges, ensure improved transparency, and protection of clients to justify their launching. These points can be drivers and obstacles to financial institutions.

What does it mean for Bitcoin?

Bitcoin ETFs could largely boost Bitcoin’s adoption among traditional investors. Investing in Bitcoin ETFs provide a safe way to get exposure to the crypto market and allows pension funds and general asset managers to start investing. Additionally, allowing individuals to invest via an ETF could also lead to more regulation and stabilization in the cryptocurrency market. It’s an exciting development that could lead to transparency and offer an increase in legitimacy of the cryptocurrency world as a whole.