Valkyrie Chief Funding Officer (CIO) Steven McClurg advised ETF.com on Nov. 2 that regulators may approve a spot Bitcoin ETF by the end of the month.
McClurg stated that he expects the U.S. Securities and Trade Fee (SEC) to ship a second request for feedback to numerous spot Bitcoin ETF candidates in the coming weeks. The SEC beforehand requested feedback beginning at the end of September. Valkyrie reportedly submitted an replace to its personal submitting this week.
The CIO stated that after the SEC sends out these new requests, it may approve the obligatory 19b-4 filings at the end of November. These filings concern the proposed rule adjustments that might permit exchanges to record the spot Bitcoin (BTC) ETFs in query.
McClurg stated that this approval timeline “likely means a February launch” in 2024, as the SEC may ask corporations so as to add extra particulars to different S-1 filings earlier than any ultimate launch.
Bitwise is “hopeful;” expects $50B over 5 years
ETF.com additionally obtained an announcement from Bitwise CIO Matt Hougan, who stated that he’s “hopeful” about his firm’s plans to launch a spot Bitcoin ETF.
Hougan commented on sure points, noting that “market manipulation is still a potential stumbling block” and famous that “custody isn’t [necessarily] a wrap.”
Although different candidates have tried to deal with points round market manipulation by introducing surveillance-sharing agreements, particularly with Coinbase, Bitwise is much less optimistic on the matter. Hougan made comparable statements when Bitwise up to date its submitting in late September, suggesting that such agreements could not meet necessities.
Each executives additionally supplied estimates relating to the quantity of worth that the pending funds may appeal to. McClurg projected $10 billion of demand for spot Bitcoin ETFs in the 4 to eight weeks after they launch. In the meantime, Hougan projected greater than $50 billion of inflows over 5 years, weighted towards the later years.
Different ETF candidates are additionally driving expectations
Valkyrie Investments and Bitwise are amongst roughly ten corporations in the working to supply the first spot Bitcoin exchange-traded funds in the U.S.
The most recent batch of proposals was largely prompted by the main asset supervisor BlackRock, which submitted its spot Bitcoin ETF utility on June 15. A number of different hopeful asset managers have patterned their very own purposes after BlackRock’s.
Elsewhere, Grayscale has attracted optimism by way of a authorized victory that can compel the SEC to assessment its ETF utility. Nevertheless, Grayscale’s plan includes changing its present GBTC fund to an ETF and is kind of completely different from most different pending purposes.