Steven McClurg, chief investment officer at Valkyrie Investments, shows how businesses are navigating a complex regulatory landscape to introduce Bitcoin spot ETFs to the U.S. market.
Elisha Owusu Akyaw of Cointelegraph communicates with Steven McClurg, the chief investment officer of Valkyrie Investments. They talk about the current state of Bitcoin exchange-traded funds (ETFs) and possible future developments.
Custody Problem Mostly Resolved, Market Manipulation Remains a Concern
However, even though Canadian and European officials have given the go-ahead for listing Bitcoin spot ETFs, regulators in the U.S. have launched a strong opposition. McClurg notes that these approvals took a long time, even for the Canadian and European marketplaces. According to McClurg, market manipulation and custody are the two main concerns U.S. authorities have with Bitcoin spot ETFs.
Notably, the chief investment officer feels that if it weren’t for the FTX scandal, the custody problem would have been mostly resolved. The FXT scandal forced regulators to reconsider approving more Bitcoin investment products. Regarding the second worry, market manipulation, McClurg thinks that comparable Canadian products have established the unreliability of such worries.
Collaboration with Regulators to Address Security Concerns
In addition, businesses like Valkyrie Investments are constantly collaborating with regulators to address essential concerns about the security of Bitcoin Spot ETFs. According to McClurg, Valkyrie has enlightened regulators on custody functions and shared notes on the company’s due diligence on custodians. This raised questions in some of the businesses that failed last year.
Despite the absence of the U.S.-based Bitcoin spot ETFs, McClurg claims that individuals in the nation can access spot ETFs from Canada through brokerage companies. Additionally, he notes that some legislators, particularly those in the House of Representatives, have been open to passing legislation that makes it simpler to introduce Bitcoin spot ETFs. But McClurg continues to be pessimistic about how soon customers will have accessibility to spot ETFs from the United States.
In conclusion, the road to Bitcoin ETFs in the US is still uncertain, but collaboration with regulators and evolving market practices offer hope for the future.