Valkyrie submits application for spot bitcoin ETF, partners with Coinbase

Crypto asset management firm Valkyrie has applied for a spot bitcoin ETF and has enlisted Coinbase as its Surveillance Sharing Agreement (SSA) partner.

This move follows a trend of similar filings to the U.S. Securities and Exchange Commission (SEC) by industry behemoths BlackRock and Fidelity earlier this month.

The entry of these finance industry heavyweights into the spot bitcoin ETF arena earlier in the month marked a turning point, setting off a chain of applications from other firms. Their leap into this emerging market segment seems to have stimulated competition among their peers.

Valkyrie’s move intended to assuage potential SEC apprehensions about market manipulation concerning their proposed offering. It is hoped that Coinbase’s inclusion will add layer of credibility and security.

Eric Balchunas, an analyst from Bloomberg, drew attention to the fact that Valkyrie has followed in the footsteps of BlackRock by re-submitting a 19b-4 form. He also observed that Valkyrie’s SSA agreement appears more assertive in its language. Furthermore, he highlighted that Valkyrie regards Coinbase as the “largest” spot bitcoin exchange.

While Valkyrie is just one of the many names seeking to gain entry into the bitcoin ETF market, the ultimate success of their product will largely depend on approval from the SEC. The regulator has so far refrained from approving any spot bitcoin ETF. Whether the wave of recent applications can change the SEC’s stance remains a point of intense anticipation.