Valkyrie Investments Was the First to File for Bitcoin ETF in the U.S

Jafrin  |  Aug 25, 2021

Asset manager Valkyrie Investments was the first to file for a Bitcoin futures exchange-traded fund (ETF) with the U.S. Securities and Exchange Commission (SEC), according to a confidential regulatory filing revealed by Nasdaq.

Valkyrie Comes First in the Bitcoin ETF Race

In a race to launch America’s first Bitcoin futures exchange-traded fund (ETF) with the U.S. Securities and Exchange Commission (SEC), asset manager Valkyrie Investments comes first.

The firm confidentially filed to “list and trade shares” of the Valkyrie XBTO Bitcoin Futures Fund with the regulatory agency two months ago, according to a filing revealed by Nasdaq.

The application remained confidential owing to smaller companies having the ability to file confidentially, Steven McClurg, chief investment officer at Valkyrie Investments, said.

“We still thought a physical Bitcoin ETF was a little further away and with futures, the way that they’re regulated and the way they trade with CME, they’re already a regulated product,” McClurg said “So it’s like the one-step, two-step way to get to a physical ETF but we thought there was a lot of opportunity with futures.” 

However, Valkyrie being the first company to file for a Bitcoin ETF does not signify that it would also be the first one to be approved. Even if approval comes through any time soon.

SEC Chair Signaled His Support Towards Bitcoin ETFs

Interestingly, the newly-revealed Valkyrie futures ETF is a so-called “33 Act fund,” referring to the Securities Act of 1933, that could invest its assets in bitcoin futures contracts exclusively. Meanwhile, many of the recent bitcoin futures ETF filings come under “40 Act” products, referring to the Investment Company Act of 1940, that would have to partly invest in fixed income or treasuries.

Earlier this month, cryptocurrency-based ETFs came into the limelight again after SEC Chair Gary Gensler signaled his support for Bitcoin-futures-based ETFs at the Aspen Security Forum on August 3rd.

“For those who want to encourage innovations in crypto, I’d like to note that financial innovations throughout history don’t long thrive outside of our public policy frameworks.”

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