US SEC allows indirect exposure to crypto assets by approving Bitcoin Strategy ETF

By: Ali Raza
Ali Raza
Ali plays a key role in the cryptocurrency news team. He loves travelling during his spare time and enjoys… read more.
on Oct 16, 2021
  • Recent reports confirmed that the SEC has given green light to Valkyrie’s Bitcoin Strategy ETF.
  • The ETF will be listed on Nasdaq, as confirmed by the platform’s vice president yesterday.
  • The ETF offers indirect exposure to Bitcoin with cash-settled futures contracts.

The US SEC has been receiving Bitcoin ETF applications and approval requests for years, but unfortunately, they never found them to be up to their high standards, and so none of them was ever approved. However, things seem to be starting to change, as shares of Valkyrie’s Bitcoin ETF have just been certified for listing on an exchange.

According to a tweet shared by Dr Julian Hosp — the CEO of Cake DeFi and a blockchain advisor for EU, the SEC officially approved Valkyrie Bitcoin Strategy ETF on October 15th, 2021.

Bitcoin jumps after the SEC’s move

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The move seems to have been just what Bitcoin (BTC/USD) needed as it made fruitless attempts to breach the $60,000 resistance level. With this news hitting the market, the coin’s price skyrocketed and it even managed to reach $62,626 only hours ago.

The $62k level is now the biggest barrier for the coin, and while it is still trying to breach it and turn it into a support, it is likely that this will happen during the day unless a correction takes place.

As for the Valkyrie’s Bitcoin Strategy ETF, it will now be listed on Nasdaq, as confirmed via a letter from the platform’s VP, Eun Ah Choi, who published it on the same day.

It is worth remembering that Valkyrie’s prospectus said its Bitcoin Strategy ETF would offer indirect exposure to the coin with cash-settled futures contracts, which is likely the only reason why the SEC felt comfortable approving it. So, while the ETF is not in direct contact with Bitcoin, and neither will the investors and traders be, it is still closely tied to the crypto industry, and as such, another step in the right direction for crypto and SEC alike.

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