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Valkyrie Anticipates Approval of Bitcoin ETFs Tomorrow

Valkyrie Expects Bitcoin ETFs to be Approved Tomorrow:

  • Valkyrie Investments anticipates the imminent launch of Bitcoin ETFs.
  • The company predicts that trading will begin on Thursday after SEC approval.
  • McClurg expects to see $4 to $5 billion in inflow in the first few weeks.

Valkyrie Investments is gearing up for a major event: the launch of their Bitcoin ETFs.

According to Steven McClurg, co-founder, and CIO of Valkyrie, the company expects the U.S. Securities and Exchange Commission (SEC) to approve these exchange-traded funds as early as Wednesday, with trading set to commence Thursday morning.

“We expect the SEC to consider ETFs effective by the end of business on Wednesday and trading to begin Thursday morning.”
– Steven McClurg

The arrival of these Bitcoin ETFs holds significant promise for both institutional and individual investors in the U.S.

McClurg anticipates an initial investment inflow of $200 to $400 million into Valkyrie’s ETF, with a total injection of capital expected to reach $4 to $5 billion in the first few weeks.

However, he acknowledges that the 13 ETF applicants will not likely be approved at the same time. The complexity lies in the requirement of having two custodians – one for crypto and one for cash, effectively doubling the pre-launch workload.

“I suspect a couple may not start on day one simply because there is a lot of work to do.”
– McClurg added

Anna Baydakova for The Block also highlights the challenges associated with launching a Bitcoin ETF compared to traditional ETFs. Attention is primarily focused on Coinbase, which is designated as the custodian for most of these ETFs, despite its ongoing legal battles with the SEC. McClurg, however, remains confident in the stability of Coinbase’s custody branch.

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