Valkyrie resubmits spot Bitcoin ETF application with Coinbase surveillance-sharing

Valkyrie Investments has made a bold move by its application for a spot Bitcoin exchange-traded fund (ETF) in the United States. The revised filing includes a crucial surveillance-sharing agreement with Coinbase, a leading cryptocurrency exchange. This strategic partnership aims to meet the stringent surveillance requirements set by the U.

S. Securities and Exchange Commission (SEC), indicating a determination to navigate the regulatory landscape successfully. Valkyrie’s decision to collaborate with Coinbase is a direct response to the SEC’s call for greater clarity and comprehensiveness in spot Bitcoin ETF applications.

The commission had previously returned the applications, urging the inclusion of a specific spot Bitcoin exchange as a surveillance-sharing partner. By securing a partnership with Coinbase, a trusted player in the crypto industry, Valkyrie demonstrates its commitment to meeting the SEC’s expectations. This latest move by Valkyrie reflects a notable shift in sentiment surrounding spot Bitcoin ETFs and suggests a changing regulatory landscape.

Previously, Valkyrie had operated Bitcoin-related funds based on futures, expressing skepticism about the approval of spot ETFs until crypto exchanges are subject to regulatory oversight. However, the company’s revised application signals a potential evolution in regulatory acceptance, bringing renewed hope for the introduction of spot Bitcoin ETFs. The recent wave of refilings, including those from BlackRock and Fidelity, showcases a collective industry response to the SEC’s feedback.

These applications now incorporate surveillance-sharing agreements to meet the SEC’s requirements for transparency and comprehensive details. Nasdaq and Cboe Global Markets, the primary stock exchanges where the ETFs are expected to be listed, have also entered into agreements with Coinbase to ensure compliance with the SEC’s surveillance standards. This shift in sentiment and the growing emphasis on surveillance-sharing agreements may pave the way for increased regulatory acceptance of spot Bitcoin ETFs.

While the journey toward approval has been challenging, the industry’s collaborative efforts demonstrate a commitment to addressing concerns and providing the necessary clarity to satisfy the SEC’s expectations. Valkyrie’s ongoing pursuit of a spot Bitcoin ETF approval, which dates back to 2021, highlights the industry’s determination to offer innovative investment vehicles to the market. Despite successfully launching an ETF linked to Bitcoin futures in the past, gaining approval for a spot ETF has remained elusive.

Numerous firms have applied for spot Bitcoin ETFs, yet the SEC has not granted regulatory approval to any of these applications. The partnership between Valkyrie, Nasdaq, and Coinbase represents a significant development in the quest for spot Bitcoin ETFs. It signals a potential shift in the regulatory landscape and reflects a growing willingness among regulators and industry participants to explore new avenues.

The outcome of these refilings and the SEC’s response is expected to shape the future of spot Bitcoin ETFs and may open up new opportunities for investors in the cryptocurrency market. As the regulatory environment continues to evolve, market participants are actively navigating the requirements and complexities associated with launching spot ETFs tied to digital assets. .