In a significant development for the cryptocurrency industry, Valkyrie Investments, a key player in the digital asset space, anticipates the approval of the first spot Bitcoin ETFs in the United States.
Steven McClurg, co-founder and Chief Investment Officer (CIO) of Valkyrie Investments revealed in an interview that the company expects the United States Securities and Exchanges Commission (SEC) to approve the ETFs by the close of business on Wednesday.
“We’re expecting the SEC will deem the ETFs effective at the close of business on Wednesday and the trading to begin on Thursday morning,” McClurg shared in his interview with Fortune. This announcement has stirred excitement among crypto traders who have been eagerly awaiting the SEC’s decision.
If the trading starts as expected on Thursday, McClurg anticipates an inflow of $200 million to $400 million of investors’ funds into Valkyrie’s ETF. He also foreshadows that all players might see $4-5 billion of inflows over the first couple of weeks.
Out of the 13 applicants for Exchange Traded Funds (ETFs), it is anticipated that not all will be successful in the initial phase. McClurg predicts that the inaugural group of 10 ETFs will be launched at the same time. He further speculates that one or two may not commence operations immediately due to the extensive preparatory work required.
Launching a Spot Bitcoin ETF is a Complex Process
McClurg explained the complexities involved in launching a spot Bitcoin ETF, which requires double the work compared to a normal ETF. The process involves ensuring that two custodians, one for crypto and one for cash, are connected.
Despite the challenges, the approval of the spot Bitcoin ETFs is seen as a major milestone for the cryptocurrency industry. It is expected to attract U.S. institutional investors, although McClurg believes that retail investors will be the first to invest. “Out of the gate, it’s going to be mostly retail, some financial advisors and I also expect a lot of outflows from GBTC,” he said.
Gensler is likely to give the green light to the numerous Spot Bitcoin ETF applications currently under the agency’s scrutiny. Regardless of whether this decision is driven by legal obligations, the introduction of the first Spot Bitcoin ETFs in the United States is set to be a significant milestone for the entire industry.
This development marks a pivotal moment in the evolution of the cryptocurrency market, potentially paving the way for increased institutional participation and mainstream acceptance of digital assets.