Title: Valkyrie CIO Predicts Spot Bitcoin ETF Approval by End of November
Introduction
Valkyrie Chief Investment Officer (CIO) Steven McClurg recently expressed his anticipation of a spot Bitcoin ETF approval by the end of November. In an interview with ETF.com, McClurg shared insights on the regulatory process and expectations for the launch of spot Bitcoin ETFs. This article will delve into McClurg’s comments, as well as statements made by Bitwise CIO Matt Hougan and the overall landscape of Bitcoin ETF applicants.
McClurg’s Timeline and Expectations
McClurg revealed that he expects the U.S. Securities and Exchange Commission (SEC) to send a second wave of comments to the various spot Bitcoin ETF applicants soon. This follows the SEC’s initial request for comments that commenced in late September. Valkyrie, a prominent contender, has reportedly submitted an update to its own filing this week.
According to McClurg, if the SEC sends out new requests as anticipated, the necessary 19b-4 filings could be approved by the end of November. These filings pertain to proposed rule changes necessary for exchanges to list the spot Bitcoin ETFs in question. However, McClurg suggested that further details may be requested, potentially pushing the actual launch to February 2024.
Bitwise’s Hopeful Outlook
Bitwise CIO Matt Hougan also shared his outlook on the spot Bitcoin ETF approval process. Hougan expressed hope regarding Bitwise’s plans to launch its own Bitcoin ETF. However, he acknowledged that market manipulation and custody concerns remain potential obstacles. While other applicants have attempted to combat market manipulation through surveillance-sharing agreements, including with Coinbase, Bitwise is less optimistic about their efficacy, as previously conveyed in their filing.
Value Projections for Spot Bitcoin ETFs
Both McClurg and Hougan provided estimates regarding the potential value that these pending ETFs could attract. McClurg predicted a demand of $10 billion for spot Bitcoin ETFs in the first four to eight weeks after their launch. On the other hand, Hougan projected over $50 billion of inflows over five years, with a heavier weighting towards the latter period.
Competitive Landscape and Expectations
Valkyrie Investments and Bitwise are two of around ten firms vying to offer the first spot Bitcoin exchange-traded funds in the United States. This influx of ETF proposals stemmed largely from BlackRock, a major asset manager, which submitted its spot Bitcoin ETF application on June 15. Several other aspiring asset managers have modeled their applications after BlackRock’s.
Grayscale, known for its popular GBTC fund, also generated optimism with a recent legal victory that compels the SEC to review its ETF application. However, Grayscale’s approach differs significantly from most other applicants, as it involves converting its existing fund to an ETF.
Conclusion
Valkyrie CIO Steven McClurg’s statement regarding a possible spot Bitcoin ETF approval by the end of November has garnered significant attention within the crypto community. While Bitwise and other applicants remain hopeful, challenges such as market manipulation and custody issues may delay the final launch. Overall, the race towards securing approval for spot Bitcoin ETFs in the U.S. is heating up, with several key players aiming to capitalize on the growing demand for cryptocurrency investment opportunities.
