Valkyrie files ETF application for Bitcoin futures after SEC chairman gave the go-ahead

On August 3, SEC chairman Gary Gensler expressed specific curiosity in ETF merchandise linked to Bitcoin futures.

After the publish specified Since then, some corporations have moved on to submit proposals for such merchandise, with Valkyrie being the third firm to take action yesterday.

SEC chairman Gary Gensler

According to order registration 11 and filed with the SEC, Valkyrie stated, “The fund will not invest in Bitcoin directly. Under normal circumstances, the Fund will attempt to buy a number of Bitcoin futures contracts so that the total face value of the Bitcoins underlying the futures contracts held by the Fund is as close as possible to 100% of the Fund’s net assets. “

Valkyrie added in the submission:

“The Fund will spend money on standardized cash-settled Bitcoin futures contracts not directly by a wholly-owned subsidiary of the Fund that’s registered in the Cayman Islands. Such futures contracts are traded on commodity exchanges registered with the Commodity Futures Trading Commission (CFTC). Currently, the Bitcoin futures contracts by which the fund invests are solely traded or topic to the guidelines of the Chicago Mercantile Exchange (CME). The worth of Bitcoin futures is set utilizing the CME CF Bitcoin Reference Rate, which supplies a sign of the Bitcoin price on sure Bitcoin money exchanges. The fund will spend money on money settled Bitcoin futures contracts.

Valkyrie filed her application for a spot bitcoin ETF in April, however as with different registrations, the SEC delayed any remaining choice by extending the deadline and opening a public remark.

ProShares and Invesco have already filed functions for Bitcoin futures ETFs with the SEC since Gensler’s speech. VanEck did this for the first time in 2017, however this try was in the end unsuccessful.

With the SEC chairman giving the inexperienced gentle to an ETF tied to Bitcoin futures, there’s a superb likelihood that we are going to see an ETF in the crypto market quickly, and that may no less than be a brand new driver of the price development time period.

Cong Tu Ngang

According to The Block

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