The Valkyrie CIO says that the SEC will ask for comments and possibly approve an ETF proposal this month after all issues are addressed.
A Valkyrie Investments exec has hinted at a strong possibility for a spot Bitcoin ETF approval this month. According to Chief Investment Officer (CIO) Steven McClurg, the United States Securities and Exchange Commission (SEC) will likely confirm an ETF approval by the end of the month.
McClurg is hopeful because applicants have adequately addressed issues of potential fraud and market manipulation, the main reason why the SEC has yet to approve any proposal. The Valkyrie CIO says the SEC may allow companies to make further comments and follow that with approval.
“Before anything else happens, we get a second round of comments, and I believe we’ll probably get those comments in the next one to three weeks,” said McClurg.
The CIO then added that a February launch is possible if approval comes in November.
Valkyrie is Also Expecting Approval for Its Bitcoin ETF
Valkyrie, along with several others like BlackRock and Grayscale, have submitted applications to the SEC for a spot Bitcoin ETF. The Commission has been in communication with the applicants and is scrutinizing their proposals. Issues include risk disclosure, computation of Net Asset Value (NAV), and environment risk inclusions. A few applicants, including BlackRock and VanEck, have amended their filings to accommodate some of the SEC’s concerns.
However, Bitwise Asset Management CIO Matt Hougan says that experts are still not completely sure. According to Hougan, “market manipulation is still a potential stumbling block…Custody isn’t [necessarily] a wrap… so there’s still a lot of work to do.”
There are several speculations about the future of the Bitcoin market when the SEC eventually approves an ETF. McClurg, for instance, believes that the spot BTC ETF market will receive $10 billion within the first two months of launch. On the other hand, Hougan sees $50 billion in five years. The Bitwise exec believes these products will receive most of this inflow years later.
MicroStrategy Inc (NASDAQ: MSTR) Co-Founder and Executive Chairman Michael Saylor said he expects Bitcoin to jump 10x following SEC approval of a spot Bitcoin ETF. Saylor believes that the SEC’s loss against Grayscale and institutional interest in the asset are factors that will pump Bitcoin. He adds that this will happen when “banks on Wall Street and responsible custodians” begin managing Bitcoin and take attention away from “shiny little tokens that have distracted and demolished shareholder value.” Interestingly, MicroStrategy spent $5.3 million on Bitcoin in October, acquiring 155 BTC. The company now has a total of 158,400 BTC.
Bernstein Research has said that the SEC will approve a spot Bitcoin ETF by January 10 for the same reasons, including the upcoming Bitcoin halving expected next April. Furthermore, Bernstein says that Bitcoin could rise to $150,000 by 2025 if the SEC approves a spot ETF. According to Bernstein analyst Gautam Chhugani, a “dispassionate view of Bitcoin as a commodity.” Chhugani has a bullish prediction that up to 10% of Bitcoin’s circulating supply will enter the ETF market.