The wait is finally over. Nasdaq regulation just announced that Valkyrie Bitcoin Strategy ETF is successfully approved for listing and registration. This is quite surprising to hear as the expected approval date was on Oct 25. As the market is highly optimistic right now, the price of BTC is continuing its rally to the previous all-time high as it breaks past $61,000.
The Securities and Exchange Commission still has yet to make it official, but we expect they will support the future products to start trading next week. Valkyrie got approval ahead of other investment management companies like Invesco and ProFunds. The Valkyrie Bitcoin Strategy ETF aims to accumulate enough bitcoin futures for their clients that the notional value will be close to 100% of the entire fund’s net assets. The other funds parted ways here. They were considering investing in vehicles and products that gave maximum exposure to Bitcoin. A good example would be private trusts.
Source- SEC Archives
The managers of this particular ETF are—Steven McClurg, Rafael Zayas, and Ryan Dofflemeyer. These portfolio managers also decided to classify the fund as non-diversified. As a result, they didn’t need to qualify for the Investment Company Act of 1940.
While the ETF approval news is good for the market as it shows crypto is maturing at an astonishing rate, there are still many concerns surrounding futures contracts. The rollover costs, contango bleed, and hedge fund manipulation— are few to name. We mentioned before that the ETFs could turn out to be inefficient and expensive to hold. However, we may not see such situations in the short term as bitcoin still has yet to hit new all-time highs since May. We can expect the ETFs to drive the narrative for bitcoin’s price growth moving forward, given all the four ETFs are approved by the SEC.
Born and brought up in India, Karthikeya Gutta is a crypto journalist and freelance contributor for ItsBlockchain. He covers various aspects of the industry with in-depth analysis and research. His passion towards blockchain and crypto ecosystem is mainly because he believes it can really change the world and help millions of people.
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