- In a recent interview, Valkyrie CIO Steven McClurg discussed the future of Bitcoin ETFs and how they could contribute to the institutionalization of the crypto sector.
- The U.S. Securities and Exchange Commission (SEC) quickly delayed its decision to prevent further speculation after losing the legal battle in the Grayscale Bitcoin ETF case last week.
- McClurg emphasizes the significance of the ETF’s probability. He points out that Bitcoin is currently mostly held by individual investors, while Financial Advisors represent a larger cash segment for investment.
As questions arose about what the SEC’s next move would be, McClurg, CIO of Valkyrie, revealed his expectations for spot Bitcoin ETFs.
Valkyrie CIO Shares Thoughts on ETFs
In a recent interview, Valkyrie CIO Steven McClurg talked about the future of Bitcoin ETFs and how they can help institutionalize the crypto industry. The Chief Investment Officer of a respected asset management company called Valkyrie shared his thoughts and views on the ongoing regulatory oversight of Bitcoin ETFs in the United States.
The U.S. Securities and Exchange Commission (SEC) quickly delayed its decision to prevent further speculation after losing the legal battle in the Grayscale Bitcoin ETF case last week. The SEC’s evaluation postponed the approval of Bitcoin ETFs until October of this year.
McClurg discussed the Grayscale ETF case and the future actions of the SEC, noting that they must tread carefully as any move could be seen as obstructing the appeal process. Steven McClurg, CIO of Valkyrie, provided some enlightening information regarding the potential outcomes of the approval in the interview.
In the interview, Steven, who serves as the Chief Investment Officer at Valkyrie, was asked whether there would be any substantial movement for ETF approvals this October and what it would mean for the market. Steven responds:
“I would have actually given a greater than 50% chance (in October) that a Bitcoin ETF would have been approved. Now it’s probably closer to 50, but you still have to wait for the legal 75-day window for the S1 to be approved after the approval has actually occurred, which still takes you about 75 days forward, but I believe the day will be sometime in the first quarter of next year.”
How Significant Could ETFs Be at the Industry Level?
McClurg emphasizes that the probability of an ETF is crucial. He mentions that Bitcoin is currently mostly held by individual investors. However, Financial Advisors represent a larger cash segment for investment. But larger than Advisors are Institutional investors, Pension Funds, Endowments, Sovereign Funds, and Insurance, representing 80% of the market’s investment capital.
Investments involving institutional investors require a regulated vehicle to invest rather than investing through crypto exchanges. Regulation direction ensures the safety of investors. McClurg also mentions the presence of institutional investors, retirement funds, state funds, and endowment funds.
The entire sector eagerly awaits the SEC’s next move. Will ETFs be approved, or will the SEC find a crafty way to delay ETF approvals once more in October? This remains the big question on every investor’s mind.
