The cryptocurrency industry is approaching a major milestone with the expected approval of the first Bitcoin exchange-traded fund (ETF) in the United States. Valkyrie co-founder Steven McClurg predicted the SEC could issue approval as early as Wednesday and trading could begin Thursday morning.
key point
- Valkyrie co-founder Steven McClurg predicted that the SEC would approve a spot Bitcoin ETF on Wednesday and that trading would begin on Thursday.
- McClurg praised SEC Chairman Gary Gensler, saying he is “good for Bitcoin,” despite criticism from some in the cryptocurrency industry.
- Valkyrie submitted its final application to the SEC ahead of the deadline amid a frenzy of filings from competitors.
- McClurg advocates a cash creation/redemption model for new Bitcoin ETFs to attract more market participants.
- Valkyrie has not yet lowered its ETF fees, and is confident its cryptocurrency expertise will appeal to investors more than mainstream brands.
In an interview with Fortune, McClurg sounded bullish about the incoming Bitcoin ETF. He believes SEC Chairman Gary Gensler was “good for Bitcoin,” ushering in the approval of Bitcoin futures and Ethereum futures ETFs last year before the main event.
His outlook contrasts with some cryptocurrency industry insiders who believe Gensler’s strict regulatory approach is harmful. Nonetheless, the approval of spot Bitcoin ETFs would signal growing acceptance.
Valkyrie joins about a dozen competitors vying to launch a spot Bitcoin ETF after years of delays and rejections by the SEC. The company filed its final application amid a flurry of last-minute filings ahead of the SEC’s late December deadline.
A few notes from our interview with Valkyrie co-founders @stevenmcclurg:
– Approved on Wednesday and expected to trade on Thursday
– I have never heard of commission voting.
– They say that cash generation will allow more market participants to participate.
– Gensler says it was “good for Bitcoin” https://t.co/z6SaArODT6— Leo Schwartz (@leomschwartz) January 9, 2024
The SEC appears prepared to approve multiple spot Bitcoin ETFs simultaneously to avoid giving any one provider a major first-mover advantage. But major brands like BlackRock and Fidelity can benefit from widespread awareness.
To attract investors, McClurg promotes Valkyrie’s cryptocurrency expertise against established financial giants new to the space. The provider already offers regulated ETFs focused on Bitcoin mining stocks and Bitcoin/Ethereum futures.
McClurg also advocates a spot Bitcoin ETF that uses a cash generation/redemption mechanism instead of the spot model dominant in stock ETFs. He believes that cash-based products invite more authorized participants, which is critical to healthy trading activity.
While competitors have been cutting ETF fees to undercut each other, Valkyrie has not followed suit. The 0.80% commission is higher than some of its competitors. McClurg wants to make it known that Valkyrie offers sophisticated service compared to its discount offerings. Fees may change later after launch.
CEO VanEck speaks of his position #Bitcoin ETF begins trading on Thursday ????
I think tomorrow will be approval day. pic.twitter.com/8hOwORMvI0
— Quinten | 048.eth (@QuintenFrancois) January 9, 2024
Ultimately, McClurg predicts that each ETF provider will find an investor base attracted to its specific value proposition in the multibillion-dollar market from which it will likely emerge. As one of the first to advocate for the approval of a spot Bitcoin ETF after initial rejection, Valkyrie aims to become the preferred choice for cryptocurrency-focused investors.
The launch of these new investment vehicles promises to expand access and drive adoption of Bitcoin, the world’s largest cryptocurrency, among both institutions and retailers.