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Valkyrie modifies Bitcoin ETF filing, SEC to review Grayscale's application

EditorHari Govind
Published 01/11/2023, 02:54 am
© Reuters.
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The U.S. Securities and Exchange Commission (SEC), under the leadership of Chairman Gary Gensler, is currently reviewing several spot Bitcoin Exchange Traded Fund (ETF) filings, including those from Valkyrie and Grayscale. This follows a trend of amendments to applications by various crypto entities such as Bitwise, BlackRock Inc (NYSE:BLK)., Fidelity Investments, Grayscale Investments, VanEck, and ARK Invest.

Today, Valkyrie Investments announced an update to its spot Bitcoin ETF filing, following a delay in the SEC's decision. The revised form S-1 registration statement allows investors to purchase common shares backed by Bitcoin, which are traded under the ticker "BRRR" on Nasdaq. This move mirrors similar changes made by other firms in the crypto space.

According to ETF analysts at Bloomberg, these amendments suggest there is ongoing backstage activity and progress within the industry. Despite the trend, some firms including WisdomTree, Invesco & Galaxy, Global X, Hashdex, and Franklin Templeton have not yet updated their filings. The SEC is currently evaluating eight to ten additional potential spot Bitcoin ETF applications.

In addition to reviewing Valkyrie's amended prospectus, the SEC has authorized it to convert its Bitcoin futures ETF into a combined investment vehicle that involves both Bitcoin and Ether futures contracts.

Furthermore, the SEC is due to hold a pivotal closed-door meeting on November 2nd to discuss Grayscale's application as per a U.S. Court of Appeals mandate. These unfolding events hold significant potential for the future of cryptocurrency investments and are being closely observed by the crypto community.

InvestingPro Insights

In light of the recent developments in the crypto space, let's take a moment to examine some InvestingPro data and tips that could further illuminate the investment landscape.

InvestingPro data shows a strong return for BTF over the last year, with a 63.62% total price return. This robust performance has continued into the shorter term, with a 26.25% return over the last month and a 15.48% return over the last three months. This data aligns with the InvestingPro tip that BTF has demonstrated strong returns over various periods.

Moreover, BTF is trading near its 52-week high, with the price being 98.92% of the 52-week high. This is consistent with the InvestingPro tip that the company is trading near its 52-week high, which may be an indicator of its strong market sentiment.

However, potential investors should also take note of a couple of InvestingPro tips that highlight some challenges. BTF suffers from weak gross profit margins, and its valuation implies a poor free cash flow yield. These are important factors to consider in the context of the broader market trends and the specific dynamics of the crypto industry.

For those interested in gaining more insights like these, InvestingPro offers a wealth of additional tips to help navigate the complex world of investing.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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