<

SEC delayed the deadline for a decision on the proposed Valkyrie Bitcoin Fund to January 7, 2022

The Securities and Exchange Commission (SEC) has delayed the deadline for a decision on a Bitcoin ETF for Valkyrie to January 7, 2022.

SEC extends decision deadline for Valkyrie Bitcoin ETF to 2022

“The Commission finds that specifying a longer period is appropriate to issue an approval or disapproval order. The proposal was made to allow sufficient time to consider and resolve the issues raised in the comments submitted,” the SEC said in a statement.

This is not the first time the Valkyrie Bitcoin Fund has faced SEC delays. Last time, it was also delayed in June this year.

Financial services firm Valkyrie Funds LLC looks out of luck. Since the Valkyrie Bitcoin Fund is a spot Bitcoin ETF, it faces a different approval process from the SEC and a different regulatory challenge.

The Valkyrie Bitcoin Fund is a spot Bitcoin ETF that offers clients shares backed by the underlying asset — in this case, Bitcoin. That is fundamentally different from Futures ETFs like the Valkyrie Bitcoin Strategy ETF, which offers customers shares tied to a bundle of contracts to buy Bitcoin in the future.

Given the difference between the two, the Valkyrie Bitcoin Fund faces a different path to potential approval than its future counterpart.

When it comes to ETF Futures, the SEC operates on a “negative consent” model, which means that its fund will be approved if the SEC does not object to the product within the required time. Spot ETFs, on the other hand, require explicit SEC approval.

Read more:

Follow us on Telegram

Follow us on Twitter

Follow us on Facebook

You might also like

LATEST NEWS

LASTEST NEWS