The Securities and Exchange Commission (SEC) postponed its decision on the Valkyrie Bitcoin Fund to January 2022.
SEC has set the deadline for decision on Valkyrie Bitcoin Fund as January 7, 2022. The SEC used the following statements in its statement:
The Valkyrie Bitcoin Fund is a Bitcoin spot ETF, meaning it faces a different approval procedure and a different regulatory challenge. Valkyrie Bitcoin Fund gives clients shares backed by the underlying asset. This is fundamentally different from futures ETFs like the Valkyrie Bitcoin Strategy ETF, which give customers a set of contractual shares to purchase Bitcoin in the future. Considering the difference between the two, we can say that Valkyrie Bitcoin Fund is facing a different process than its futures counterpart.
When it comes to futures ETFs, the SEC operates on a “negative endorsement” model; This means that a company’s futures ETF is approved if the SEC has not objected to the product for the required period of time. Spot ETFs, on the other hand, require positive approval from the SEC.