The US Securities and Exchange Commission has again postponed its decision on the Valkyrie Bitcoin ETF until January 2022.
Deadline is now January 7, 2022
The Securities and Exchange Commission (SEC) has postponed the deadline for a decision on the proposed Valkyrie Bitcoin Fund to January 7, 2022. The agency said in a statement. declaration:
“The Commission considers it appropriate to
designate a longer period of time within which an injunction can be issued approving or disapproving the proposed rule change, so that it has sufficient time to consider the proposed rule change and the issues raised in the comments submitted.”
This is not the first time the Valkyrie Bitcoin Fund has faced a slowdown from the SEC. Earlier, in June of this year, it was also postponed once.
Valkyrie has previously received approval for its Bitcoin futures ETF (called Valkyrie Bitcoin Strategy ETF). However, the Valkyrie Bitcoin Fund is a Bitcoin spot ETF. This means that it has to do with a different approval process than the SEC. As a result, it faces another regulatory challenge.
A Bitcoin spot ETF is still too exciting
The Valkyrie Bitcoin Fund is the company’s Bitcoin spot ETF. This means that the fund gives clients stocks that are backed by the underlying asset, in this case Bitcoin.
That is fundamentally different from a futures ETF like the Valkyrie Bitcoin Strategy ETF. This gives those customers shares associated with 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 possible approval than its futures counterpart.
When it comes to futures ETFs, the SEC operates on a “negative consent” model. This means that the futures ETF will be approved if the SEC does not object to the product for the necessary period. Spot ETFs, on the other hand, require confirmatory approval from the SEC.