Valkyrie’s Bid to Launch a Bitcoin ETF: A Familiar Ride Down Memory Lane

The Return of the Bitcoin ETF Craze

As if we collectively hit the rewind button on our investment strategies, Valkyrie Digital Assets has stepped into the ring with a fresh Bitcoin ETF application, echoing the chaotic days of 2018. Can we expect a sequel to the thrilling—and often painful—adventures in cryptocurrency? Spoiler alert: History may suggest otherwise.

Valkyrie’s New Proposal

Just last Friday, the Texas-based investment firm filed to list the Valkyrie Bitcoin Trust on the New York Stock Exchange. However, in the grand theatrical play of financial filings, this application is sans a trading ticker, leaving us dangling in suspense. Will investors soon be holding bags of Bitcoin or just bags of disappointment? Only time will tell!

A Walk Down Memory Lane

If we glance over our shoulders, the past reveals a teeming crowd of nearly nine contenders from the last Bitcoin bull run, all hoping to secure the coveted ETF approval. Big players like VanEck and Direxion threw their hats into the ring alongside the Winklevoss twins’ Gemini. Despite the hype, many of those dreams didn’t make it past the SEC’s rigorous filtering system.

Voices from Within the Industry

Donnie Kim, CEO of Kryptoin, shared insights with Cointelegraph about the SEC’s cautious approach. He explained, “The commission is in a holding pattern, partly to understand the consequences of existing products and partly to seek guidance amid the current political landscape.” So, it seems the SEC is taking the slow train, even as retail investors rush to board the crypto hype train.

The ETF Landscape Today

Despite the SEC’s historical hesitation to green-light a Bitcoin ETF, the current climate is steeped in renewed enthusiasm for cryptocurrencies. Just last week, VanEck decided to revive its ETF aspirations with a filing for a Digital Assets ETF, which would track a newly minted Global Digital Assets Equity Index. Meanwhile, across the pond, other exchange-traded products are enjoying their own moments in the limelight—like Switzerland’s Bitcoin ETP and an Ethereum ETF in Canada that sparked so much interest it temporarily halted trading. It seems the ETF party may continue, just as long as it’s outside U.S. borders.