Decision on the Valkyrie Bitcoin ETF is reportedly on Halt by the US SEC 0 215

As per the latest reports, the United States Securities and Exchange Commission has made a concerning announcement for the investment community. The reports suggest that the US SEC has announced that it is putting the application consideration of one of the BTC ETFs on hold.

The firm has announced that it is currently going to put the approvals of the BTC EFTs on hold for an indefinite amount of time. The news comes after the submission of the recent BTC ETF request submitted by Valkyrie Digital Assets.

Valkyrie Digital Assets has revealed in a statement that it has received a communication from the US SEC in regards to its BTC ETF application. The regulator has informed them that there will be a delay in approving their request for the exchange-traded fund of Bitcoin.

Valkyrie is a Digital Assets firm that belongs to the investment fund family that is based in Texas.

The announcement in regards to the delaying of the approval process for the BTC ETF was made by the US SEC on Tuesday, June 29, 2021. In the announcement, the US SEC has announced that after careful consideration, it has come to a conclusion about the considering process for the BTC ETF.

It has been agreed that it would be appropriate for the BTC ETF process to be elongated and stretched the time period for the approval of the BTC ETF. For the record, the request for the approval of the Valkyrie Bitcoin Trust was filed by the firm back in January 2021.

In the request, Valkyrie Digital Assets firm had proposed that once approved, it would want to launch its listing through the New York Stock Exchange (NYSE).

The US SEC has revealed that it has just received the comments for the funds that were made and published for the process back in May 2021. The regulatory authority has clarified that it has decided to extend the reviewing process for the ETF approval by 45 days.

The US SEC has confirmed that the final decision on the Valkyrie Bitcoin Bitcoin Trust would be made and provided by August 10, 2021.

This is not the first BTC ETF that has experienced a delay in the approval process from the SEC’s end. Prior to the Valkyrie Bitcoin Trust, it was VanEck’s Bitcoin Trust that had experienced a delay in the approval process. The approval delay for VanEck Bitcoin Trust was the second delay that the US SEC had experienced in the year 2021.

The US SEC has clarified that by August 10, it will be aiming to collect more public feedback and comments in regards to the Valkyrie Bitcoin Trust.

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IMF Says Russia and Iran May Use Crypto Mining for Monetizing Energy 0 42

The April 2022Global Financial Stability Report of the IMF has highlighted the consequences of the ongoing Russian invasion of Ukraine. The document said that the role of the US dollar was bound to be affected because of the conflict, as it would lead to the introduction of central bank digital currencies (CBDCs) and the global financial system’s resiliency would also be put to a test. The climate transition goals could also be put at risk because of the priorities associated with energy security. Another issue that would have to be dealt with in the coming years by lawmakers is the ‘cryptoization’ which is likely to occur because emerging markets are experiencing a widespread use of crypto.

IMF cited an increase in crypto trading volumes seen after the introduction of sanctions on Russia to back their statement. This included the financial penalties that had been imposed by Western nations on Russia because of its military invasion. The report said that such cross-border transactions were increasing in the long-term, which means that there would be challenges when it comes to imposing sanctions and managing capital flow. The IMF noted that crypto transactions have increased in both Russia and Ukraine because of the capital restrictions that have been imposed.

However, it is important to note that there has been a fall in liquidity in centralized exchanges where the hryvnia and ruble trading pairs are concerned. Therefore, using crypto exchanges for making large transfers has become rather impractical due to reduced liquidity. But, the IMF admitted that users do have the option of evading some measures via the crypto ecosystem because the identity verification requirements are quite lax in this industry. Hence, the international organization said that blocking new deposits of ruble and freezing crypto assets meant that users could have shifted to non-complying or less transparent crypto platforms and service providers.

Experts at IMF believe that both Russia and Iran could circumvent their respective sanctions via crypto mining. The nations could use their energy resources for generating revenue via crypto mining outside of the traditional financial system. Currently, the countries have a limited share of crypto mining activities, but there is a possibility that it could be increased, considering the size of the mining industry. The IMF quoted estimates showing that almost 11% of the mining revenues of bitcoin could have gone to Russia, which was around $1.4 billion per month, while Iran’s share had been 3%.

Bank of England Says Crypto Assets have Financial Stability Risks 0 81

On Thursday, the Financial Policy Committee of the Bank of England disclosed that they are working on developing a regulatory framework for digital assets. The central bank also made a reference to the sanctions that have been imposed because of the war between Russia and Ukraine in the statements. Bureaucrats and financial regulatory authorities all over the world have become increasingly concerned in recent times that Russia could take advantage of crypto assets to bypass the economic sanctions that have been imposed. The press statement of the BOE said that it was unlikely for crypto assets to provide Russia with a feasible way to get around sanctions at a large scale for now, but there was a possibility they could do so.

Therefore, it is a must to ensure that there are effective public policy frameworksthat can accompany innovation in crypto assets for maintaining the integrity and trust in the financial system. The crypto economy has been highly criticized by some members of the Bank of England for quite a while. Last year in mid-November, Andrew Bailey, the Governor of the Bank of England, had expressed his concerns about the adoption of bitcoin as legal tender in El Salvador. Sir Jon Cunliffe, the deputy governor for financial stability for the central bank, said in the following month that prices of crypto assets could drop to zero.

On Thursday, the report of the FPC talked about financial stability. The committee of the central bank noted that the FPC is assessing the risks to the financial system’s stability and it has concluded that these are currently limited. This is because their size remains limited for now and they are not that connected with the wider financial system. However, the FPC said that if they continue to grow at the same pace, and if they become interconnected with the overall financial system, then these crypto assets could pose a risk to the stability of the financial system.

Since the conflict between Russia and Ukraine began, politicians and lawmakers all over the globe have been discussing, developing, or even proposing laws aimed at regulating and researching digital currencies. The FPC’s statements on Thursday show that the BOE wants to classify crypto assets in the same category as it does traditional financial assets. Not only does the FPC plan on developing a regulatory framework that would govern digital assets, it has also mentioned stablecoins.

The FPC said that a major stablecoin that does not have a reliable deposit guarantee could turn out to be a risk to the UK’s financial system. According to the committee, if they introduce a systemic stablecoin, which is backed through a deposit mad with a commercial bank, it would result in significant risks to the stability of the financial system. All of this talk about crypto has been brought forward because of the Russian-Ukraine conflict and the possibility of the former using cryptocurrencies to evade the tough economic sanctions that have been imposed by Western nations due to its actions.

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