Valkyrie Bitcoin ETF Will Launch on Wednesday; CIO Expects Huge $4–5 Billion Inflows

Embracing Optimism: Valkyrie Investments Sets the Stage for Bitcoin ETF Launch

As the clock ticks towards the January 10th deadline for potential approval of Bitcoin ETF applications by the US Securities and Exchange Commission (SEC), Valkyrie Investments is poised to make a significant impact on the crypto landscape. Co-founder and Chief Investment Officer (CIO) Steven McClurg’s optimism is contagious, as the firm gears up for the launch of its spot Bitcoin ETF, the Valkyrie Bitcoin Fund (ticker: BRRR).

Awaiting SEC’s Nod

McClurg anticipates the SEC deeming the ETFs effective at the close of business on Wednesday, paving the way for trading to commence on Thursday morning. This development has ignited expectations of substantial investor funds flowing into Valkyrie’s ETF and the broader Bitcoin market.

Confidence Unshaken

In a statement to The Block, McClurg predicts that Valkyrie’s fund could attract inflows ranging between $200 million and $400 million upon its launch. The CIO goes a step further, envisioning an overall market surge with $4-5 billion inflows in the first few weeks.

Targeting Retail and Advisors

McClurg foresees retail investors and financial advisors as the initial participants, possibly witnessing outflows from Grayscale’s Bitcoin Trust (GBTC). Financial advisors typically demand a track record of two to three years before recommending new financial products to their clients.

Coinbase Lawsuit: No Cause for Concern

While most Bitcoin ETF issuers have chosen Coinbase as their custodian, McClurg remains unfazed by the ongoing SEC lawsuit against the popular exchange. He highlights that the custody side of Coinbase’s business, crucial to the ETFs, remains unaffected. The SEC complaints primarily target the consumer-exchange side, akin to common experiences faced by financial firms.

Fee Wars Intensify

The competition for the spot Bitcoin ETF has escalated, with issuers vying fiercely by offering the lowest fees. In a Monday morning update, 11 issuers proposed fees ranging from 0.24% to 1.5%, with Valkyrie leading with a competitive 0.8%. McClurg acknowledges that profitability may not be immediate, as ETFs often operate at a loss initially.

Long-Term Commitment

Despite the potential initial challenges, Valkyrie Investments envisions profitability within the first year of trading for its ETF, demonstrating a steadfast commitment to the ETF business. McClurg believes that the intense fee competition is a short-term hurdle on the path to long-term success.

The Road Ahead

As Valkyrie Investments, under the leadership of Steven McClurg, stands optimistic about the SEC’s potential approval of Bitcoin ETFs, the crypto community eagerly awaits the ETFs’ effectiveness and subsequent trading. With expectations running high, Valkyrie anticipates significant investor inflows, potentially reaching hundreds of millions of dollars.

Based on the daily chart, BTC’s sideways price action was above $46,600 over the past 24 hours.

Source: BTCUSDT on TradingView.com

Featured image from Shutterstock, chart from TradingView.com source

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