Valkyrie Anticipates Approval of Spot Bitcoin ETF by SEC This Month

cryptonews.com:

The Securities and Exchange Commission (SEC) may finally approve the long-awaited spot bitcoin exchange-traded fund (ETF) as early as this month, according to Valkyrie’s chief investment officer, Steven McClurg.

Bitcoin’s price has rallied over the past few months in anticipation of a spot ETF approval, doubling in value since the start of 2023.

A spot bitcoin ETF holds the digital currency directly, unlike existing bitcoin futures ETFs which invest in derivatives contracts. Major financial institutions like BlackRock, Fidelity, ARK Invest, and Grayscale have applied to offer spot bitcoin ETFs after years of denial by the SEC over concerns about potential manipulation and adequate pricing sources.

McClurg predicts the SEC will send another round of comments to applicants within the next few weeks, followed by potential approval of rule changes by month’s end. He argues late November approval could lead to a February fund launch.

“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,” McClurg stated in an interview on Thursday, after Valkyrie amended its own spot bitcoin ETF application.

“A late November approval likely means a February launch,” he added, noting firms still need to submit registration forms after rule changes are authorized.

The SEC is currently reviewing 8-10 spot bitcoin ETF applications. Recent amendments have expanded on risk disclosures, underlying benchmark sources, pricing methodology, custodial arrangements, and other specifics per SEC requests. McClurg believes the years-long debate over market manipulation and custody issues has largely subsided. Other experts caution these factors, particularly potential