Valkyrie and Bitwise Compete for Spot Bitcoin ETF as Crypto Market Skyrockets

• Valkyrie and Bitwise have submitted applications to the U.S. Securities and Exchange Commission (SEC) to launch a spot Bitcoin Exchange-traded fund (ETF).
• These initiatives underscore the escalating interest in providing investors with regulated and accessible avenues to invest in the Bitcoin market.

The U.S. Securities and Exchange Commission (SEC) continues to receive an influx of applications to introduce a spot Bitcoin Exchange-traded fund (ETF). Latest entrants to this expanding roster are the financial juggernauts Valkyrie and Bitwise.

Valkyrie, on June 21, filed an S-1 registration form, marking its intent to debut a spot Bitcoin ETF. Their vision involves listing this fund on the Nasdaq exchange with the trading symbol ‘BRRR.’ Valkyrie’s early involvement in Bitcoin derivative products sets it apart in the rapidly evolving crypto landscape.

In October 2021, Valkyrie introduced the Valkyrie Bitcoin Strategy ETF (BTF), a BTC futures ETF in the U.S. By December, the company had also initiated the Valkyrie Balance Sheet Opportunities (VBB), which was later liquidated in October 2022.

In parallel, Bitwise has submitted a 19b-4 form aiming to rejuvenate its spot Bitcoin ETF application. Several enterprises such as Valkyrie, BlackRock, Bitwise, Invesco, and WisdomTree are fervently vying for the green light for their respective ETFs. Their collective goal centers around presenting investors with controlled and straightforward ways to partake in the Bitcoin marketplace.

These unfolding developments signify the continued growth and maturation of the Bitcoin domain, with ETFs emerging as a pivotal instrument for investors desiring a regulated Bitcoin exposure. It’s critical to highlight, though, that the SEC, citing inadequate customer safeguards, has turned down multiple proposals in the past. However, the entrance of BlackRock into the scene has ignited the belief that the scenario may change in favor of ETF approval.

Following BlackRock’s application for a spot Bitcoin ETF, Bitcoin has reversed its downward trend, registering a more than 20% gain and crossing the $30,000 threshold. This move has also incited substantial ‘whale’ activity in the market.

This recent uptick in price has boosted Bitcoin’s dominance to account for half of the total crypto market. Alongside Bitcoin, other alternative coins have participated in this upward trend. The wider cryptocurrency market has welcomed an addition of $118 billion, with Bitcoin contributing a significant $88 billion.