SEC Extends The Deadline For Valkyrie Bitcoin ETF Decision To 2022

The SEC extends the deadline for the Valkyrie Bitcoin ETF decision to 2022, pushing back again despite the recently approved futures ETFs so let’s find out more in our latest bitcoin news today.

The Securities and Exchange Commission- SEC extends the deadline for a decision on the proposed Valkyrie Bitcoin Fund to January 7, 2022, according to the statement:

“The Commission finds that it is appropriate to designate a longer period within which to issue an order approving or disapproving the proposed rule change so that it has sufficient time to consider the proposed rule change and the issues raised in the comment letters that have been submitted.”

This is not the first time that the Valkyrie Bitcoin Fund faced a delay in the SEC approval which was delayed in June of this year initially. The financial services company Valkyrie Funds LLC is again at a waiting stop of the US recent pivot to BTC exchange-traded funds aster gaining approval for its Bitcoin futures ETF but not for its original ETF application. Valkyrie recieved the green light for its Bitcoin futures ETF after ProShares and VanEck Futures ETFs got theirs. The Valkyrie BTC fund however is a spot ETF which means it faces a different approval procedure from the SEC and faces a different regulatory challenge.

A note on Bitcoin ETF: the SEC is unlikely to "announce" anything.

The way it works—in the case of futures ETFs—is a negative consent model. A company files for one and, if SEC doesn't object within 75 days, good to go.

ProShares was first to file, so will be first to list

— Jeff Roberts (@jeffjohnroberts) October 15, 2021

The BTC fund is the company’s spot ETF which means that the fund will give customers shares backed by an underlying asset which is Bitcoin in this case. This is different from futures ETFs like the Valkyrie Bitcoin Strategy ETF that gives the customers shares that are tied to contracts to purchase BTC in the future. Given the difference between the two, the Valkyrie BTC fund is facing a hard time for a potential approval than its future counterpart. When it comes to the futures ETF, the SEC operates at a negative constant model which means that the futures ETF gains approval if the SEC doesn’t object to the product during the timeframe. The spot ETFs ont the other hand, need another approval from the SEC.

As recently reported, The basic concept behind Valkyrie’s Innovative Balance Sheet ETF is pretty interesting and the crypto investment firm filed a prospectus with the Securities and Exchange Commission already. As the name suggests, an ETF is an investment product that is comprised of bonds, stocks, and commodities traded on an exchange such as shares. ETFs can be easily traded over the day and this makes them quite desirable to investors.