Valkyrie (an investment project) proposed an idea to link an ETF to Bitcoin mining firms on Nasdaq (stock market).
To be exact, about 80% of the ETF assets would be invested in securities of companies from Bitcoin mining.
October 2021 was the time when Valkyrie launched the strategy ETF. Furthermore, the SEC first accepted the registration request for ProShares’ Bitcoin Strategy ETF on the NYSE on Friday, shortly before doing the same for shares of digital asset manager Valkyrie’s BTC futures ETF for a listing on the Nasdaq.
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The second Bitcoin futures-linked exchange-traded fund in the United States began trading on the Nasdaq, opening at a price of $25.52 per share.
Additionally, since October, shares on the fund traded on the Nasdaq for $14.93 have decreased by 40%.
On a SEC talk, that happened on Wednesday, Valkyrie expressed the risks such as:
Shortages of bitcoin mining computers could result in reduced bitcoin mining capacity and increased operating costs, which could materially delay the completion of any planned bitcoin mining capacity expansion and result in a competitive disadvantage.
The regulatory body has some time until February 14, to reach a decision on the fund or extend the deadline.
However, he also pointed out that Bitcoin miners will not invest in Bitcoin, but approximately 80% of its assets will be offered a display to the crypto assets by using the securities of companies that obtain 50% of their profits and providing tools related to mining.
We know that there isn’t anything certain about several crypto ETF applications in the United States. In contrast, Canada allowed ETFs from Fidelity. Besides, Fidelity did officially launch the Fidelity Advantage Bitcoin exchange-traded fund as well as the Fidelity Advantage Bitcoin ETF Fund. And these are the first such assets to be made available in the country.
Speaking of the United States, former Acting Comptroller of the Currency Brian Brooks stated that he thinks the country is behind in allowing crypto ETFs to launch.
The Securities and Exchange Commission, according to Brooks, is to blame for the lack of ETFs in the United States. Brooks suggested a solution where the traditional financial institutions could be treated and viewed in much the same way as crypto.
When I hear people talk about the idea that we need one regulator for crypto, I would say we should first have one regulator for banks, but we have three of them.
However, there aren't any guarantees if this suggestion will be taken into consideration.
