The US SEC has once again delayed the deadline for a decision on the proposed Valkyrie Bitcoin ETF to January 7, 2022. “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,” the SEC said in a statement.
SEC continues to delay its decision on bitcoin ETF.
This is not the first time the Valkyrie Bitcoin Fund has faced a delay in the SEC’s approval period, which was most recently delayed in June of this year. Financial services firm Valkyrie Funds LLC is at the crux of the United States’ recent pivot to Bitcoin exchange-traded funds (ETFs), having gained approval for its Bitcoin futures ETF—the Valkyrie Bitcoin Strategy ETF—after the ProShares and VanEck futures ETFs first gained approval with the SEC. However, the Valkyrie Bitcoin Fund is a Bitcoin spot ETF. It faces a different approval procedure from the SEC and a different regulatory challenge.
The Valkyrie Bitcoin Fund is the company’s Bitcoin spot ETF.
The Valkyrie Bitcoin Fund is the company’s Bitcoin spot ETF, meaning the fund gives customers shares backed by the underlying asset— Bitcoin. That is fundamentally different from futures ETFs like the Valkyrie Bitcoin Strategy ETF, which gives customers shares tied to a bundle of contracts to buy Bitcoin in the future. Given the difference between the two, the Valkyrie Bitcoin Fund is facing a different road to potential approval than its futures counterpart.