For Steven McClurg, Spot Bitcoin ETFs Likely to Receive SEC Approval by November 2023

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The US Securities and Exchange Commission (SEC) is expected to approve multiple spot Bitcoin exchange-traded fund (ETF) applications in November 2023, says Steven McClurg, co-founder of Valkyrie Investments. The SEC could provide additional comments to the proposals within the next couple of weeks, eventually approving rule changes in November 2023. The market could see the availability of spot Bitcoin ETFs as early as February 2024. Valkyrie Investments and other financial giants like BlackRock, Invesco, WisdomTree, and Direxion are competing for approval on spot Bitcoin ETFs.

SEC to Respond to Applications Soon

McClurg believes that the SEC will issue further comments on the pending spot Bitcoin ETF applications within the next one to three weeks. These comments would likely be followed by the approval of rule changes in November 2023. This view coincides with the recent optimism expressed by Galaxy Digital CEO Mike Novogratz regarding the approval of a spot Bitcoin ETF by the end of November.

Competition Among Potential Launchers Of Spot Bitcoin ETF

Valkyrie Investments has recently filed an updated application for its Valkyrie Bitcoin Fund with the SEC, which will allow investors to purchase common shares supported by Bitcoin on Nasdaq under the ticker BRRR. Other contenders vying for approval include BlackRock, Fidelity Investments, VanEck, Invesco, and more. Valkyrie Investments presently manages two ETFs related to Bitcoin, with an active filing for a spot Bitcoin ETF and a combined asset value of over $51 million.

  • BlackRock – The investment management giant submitted an application for a Bitcoin futures ETF in October 2021.
  • Invesco – In partnership with Galaxy Digital, Invesco filed applications for four crypto-related ETFs, including the Invesco Galaxy Crypto Economy ETF and the Invesco Galaxy Blockchain Users ETF in September 2021.
  • WisdomTree – In June 2021, WisdomTree filed an application to launch a Bitcoin ETF that would invest solely in Bitcoin.
  • Direxion – Direxion requested approval from the SEC to introduce a Bitcoin Strategy ETF in May 2021, aiming to achieve its investment objectives by investing in Bitcoin futures contracts.

The Importance Of Spot Bitcoin ETF Approvals

Spot Bitcoin ETFs are viewed as crucial for the crypto market’s growth, offering investors an effective way of accessing Bitcoin without holding the asset directly. They provide greater liquidity and transparency while reducing the risk associated with cryptocurrency exchanges. Furthermore, these offerings could attract institutional investors and help boost the credibility and acceptance of cryptocurrencies overall when compared to the currently available Bitcoin futures-based ETFs.

What Sets Spot Bitcoin ETFs Apart From Futures-Based ETFs

Futures-based ETFs like those proposed by ProShares and Valkyrie Investments involve purchasing Bitcoin futures contracts traded on the Chicago Mercantile Exchange (CME). For these ETFs, investors do not necessarily have direct exposure to the underlying asset, i.e., Bitcoin. Instead, they are exposed to potential price movements through derivative contracts.

In contrast, spot Bitcoin ETFs aim to hold actual Bitcoins, offering investors direct exposure to the underlying asset. This difference is significant as it allows investors to gain exposure to the cryptocurrency without the complexities arising from futures contracts.

The growing interest in spot Bitcoin ETFs is a positive sign for the crypto market, with industry leaders like Steven McClurg of Valkyrie Investments and Mike Novogratz expressing optimism about their approval. If the SEC approves rule changes for spot Bitcoin ETFs by November 2023, it could pave the way for major market players like BlackRock, Invesco, WisdomTree, and Direxion to launch their respective offerings.

As more contenders enter the race toward SEC approval, this development presents an opportunity for unprecedented growth in the cryptocurrency sector. Spot Bitcoin ETFs will not only provide investors with direct exposure to Bitcoin but also enhance the credibility and acceptance of cryptocurrencies in general.


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