Valkyrie CIO eyes US$400 mln inflow in the first week of Bitcoin ETF launch: The Block

Valkyrie Investments may launch its spot Bitcoin exchange-traded fund (ETF) as early as Thursday, following an anticipated approval by the United States Securities and Exchange Commission (SEC) by the end of business on Wednesday, according to Steven McClurg, the firm’s chief investment officer.

In an interview with The Block, McClurg said that the Nashville-based crypto asset manager expects an influx of US$200 million to US$400 million into its ETF in the initial week, with the broader market potentially seeing up to US$5 billion in the first few weeks.

McClurg added that he expects 10 ETFs to debut simultaneously, although not all 13 applicants may launch immediately.

If the SEC approves the applications, U.S. investors will be able to trade Bitcoin shares on a major exchange for the first time, potentially attracting both institutional and retail investors. The anticipation for spot Bitcoin ETFs has been building, with Valkyrie’s ETF, symbolized by the ticker BRRR, standing out as a nod to crypto culture and the firm’s digital asset expertise.

In a separate interview with Fortune, McClurg shared insights on the SEC’s process and Valkyrie’s preparations, including the team’s extensive work during the holiday season to ensure their application was ready for review.

The SEC’s expected approval signals a growing acceptance of cryptocurrencies within regulated financial markets, potentially leading to increased mainstream adoption. Valkyrie’s ETF, with its distinctive ticker and crypto-native approach, aims to capitalize on this shift by offering investors a new way to gain exposure to Bitcoin.

Valkyrie’s ETF is set to offer a fee of 0.8%, which, while competitive, is not the lowest among the applicants. McClurg emphasized the importance of not being the cheapest option but rather focusing on sophistication in Bitcoin storage, security, and trading.

The firm expects a mix of institutional and retail investors, with retail investors likely to be the first movers. Valkyrie’s strategy is to attract those seeking expertise in the Bitcoin space rather than those looking for a well-known brand name.

The introduction of spot Bitcoin ETFs also raises questions about the alignment with Bitcoin’s original ethos, which highlights decentralization and the absence of intermediaries. However, McClurg argued that the ETFs offer investors options and accessibility, catering to those who may not be technically inclined to self-custody their Bitcoin.

Source