Valkyrie ETF Approval: Insights into Bitcoin Futures and Spot ETF Prospects

The SEC Gives Valkyrie a Thumbs Up

The United States Securities and Exchange Commission (SEC) has officially approved Valkyrie’s futures exchange-traded fund (ETF) application, adding to the growing list of such financial products. This move isn’t entirely shocking, as the SEC has previously opened the door for futures ETFs. However, spot ETFs remain as elusive as a teenager’s room clean-up—good luck finding one without a full-on intervention.

Understanding the SEC Approval Process

The SEC’s go-ahead for Valkyrie was documented in a release referencing the Securities Exchange Act of 1934, using the 19b-4 form. Yes, a number of acronyms and numbers that read like a high school math test are involved. This particular form is the same one that hopefuls for a spot Bitcoin ETF use, although it’s been more like a bittersweet symphony for them, as their applications have been met with continued denials.

A Snapshot of Bitcoin Futures ETFs

Valkyrie filed for their XBTO Bitcoin Futures Fund back in August 2021, with the aim of tracking Bitcoin futures contracts. Since then, the SEC has also approved similar products from ProShares and VanEck, while spot Bitcoin ETF applications have piled up in the “No” bin of rejection. It seems the SEC has a soft spot for futures ETFs, like a grandparent with a favorite grandchild.

The Global Perspective on Bitcoin ETFs

Let’s take a quick glance around the world: Canada, Europe, and parts of Latin America are ahead in the Bitcoin ETF game, flaunting their financial products like they just won the lottery. Meanwhile, the U.S. is still in what feels like a marathon relay, slowly passing the baton of approvals. The SEC watches like a hawk, while firms like Bitwise have pivoted to focusing on spot funds instead—talk about playing defense!

The Future: Will Spot ETFs Finally Land?

Given the rise in ES funds, a spotlight on spot ETFs is intensifying. According to the crystal ball—also known as analysts from Bloomberg—there’s a chance the SEC could greenlight a spot Bitcoin ETF as early as mid-2023. This speculation is built on a proposed amendment that could redefine what an “exchange” is. However, a recent Nasdaq poll indicates skepticism amongst financial advisers, with only 38% believing in eventual approval for spot ETFs. Guess it’s safe to say some are still waiting for Godot.