Valkyrie Refiles Bitcoin ETF Application Amid Crypto Optimism

Valkyrie has become the latest issuer to resubmit an application for a Bitcoin exchange-traded fund after th Securities and Exchange Commission deemed the initial documents inadequate.

What Happened: The firm, based in Nashville, Tennessee, revealed in its filing that Coinbase Global Inc. COIN would offer market surveillance for its proposed Bitcoin fund.

The SEC had previously expressed concerns over the lack of clarity in earlier filings.

The recently submitted documents reveal that Nasdaq, where Valkyrie plans to list if approved, had "executed a term sheet with Coinbase" on June 30 to "enter into a surveillance-sharing agreement." 

Valkyrie was among the first issuers to introduce a Bitcoin-futures ETF in 2021.

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This fund, known as the Valkyrie Bitcoin Strategy ETF, trades under the ticker BTF BTF.

Why It's Important: Following BlackRock's BLK filing for a similar ETF in mid-June, numerous other firms have filed or refiled for spot products, buoyed by market optimism that the SEC might change its long-held stance against such a fund.

Indicating a possible shift in its position, the SEC did permit ETFs linked to Bitcoin futures in 2021 and recently approved a leveraged Bitcoin futures fund.

BlackRock's initial filing not only triggered a rush among other issuers to file similar applications but also ignited a broader rally for cryptocurrencies.

Major cryptocurrencies like Bitcoin BTC/USD, Ether ETH/USD, and Dogecoin DOGE/USD have rallied 19%, 6%, and 2% over the past month, according to data from CoinGecko.

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