• The Valkyrie Bitcoin ETF has also included Coinbase for surveillance sharing just like BlackRock did in its reapplication.
• BlackRock CEO Larry Flink has admitted Bitcoin and crypto assets are digital gold meant to hedge against inflation.

The heightened interest in Bitcoin among other crypto assets from institutional investors is undeniably fueling the recent bullish outlook. The Bitcoin Exchange Traded Funds (ETF) frenzy that was kickstarted by several high-end investment fund managers including BlackRock and Fidelity has significantly changed the regulatory perspective on the crypto market. Furthermore, the cryptocurrency market has steadily held above $1 trillion despite the severe effects of the bear market. Additionally, the rising global inflation has undoubtedly pushed investors away from the fiat market to digital assets.

Valkyrie Investments Reapplies for Bitcoin ETF

The United States Securities and Exchange Commission (SEC) has recently received increased applications of spot Bitcoin ETF from notable investment fund managers led by BlackRock with nearly $10 trillion in AUM. In the latest developments, Valkyrie Investments, a top-tier financial services firm that bridges the gap between the traditional market and the digital asset economy, has ostensibly reapplied for a Bitcoin ETF with the United States SEC. 

According to the Bitcoin ETF filing, Valkyrie made similar changes to that of BlackRock to include Coinbase Global via a surveillance sharing agreement (SSA). 

The Valkyrie Bitcoin ETF is also expected to be listed on the Nasdaq market if the SEC approves. Moreover, experts argue that it is only a matter of time before the SEC approves the first Bitcoin ETF in the United States in a bid to play catch up with other global economies. For instance, Canada has a running Bitcoin ETF, China is adopting crypto through Hong Kong, the EU recently passed the MiCA regulatory framework, and the United Kingdom also passed laws to adopt the crypto market safely.

Currently, Valkyrie has a Bitcoin strategy ETF running on the NASDAQ via ticker BTF and primarily invests in Bitcoin futures contracts. Notably, the Valkyrie Bitcoin BTF product began trading on the Nasdaq back in 2021 and the company now wants to expand its offering to the spot market. Moreover, more institutional investors are seeking exposure to crypto assets but are ending up on risky products like FTX with minimal regulatory approvals.

Market Outlook 

The increased interest in Bitcoin and other digital asset products amid diminishing supply is a clear indication the crypto market will remain in a bullish outlook in the coming years. In the past 4-5 weeks, Bitcoin price has rallied from trading below $25k and lost the narrative of falling back below $20k to trading around  $31k on Thursday. 

According to BlackRock CEO Larry Fink, in the latest TV interview, Bitcoin and crypto products are digital gold that are helpful tools to hedge against inflation.

“Specifically on bitcoin, as I’ve said in the past, we’re a believer in the digitization of products,” Flink noted. “Bitcoin is an international asset…It can represent an asset that people can play as an alternative.”