Bitcoin ETFs will start trading on Thursday, executives say

The cryptocurrency community is on the edge of anticipation, eagerly awaiting the US Securities and Exchange Commission’s (SEC) upcoming decision on the first US Bitcoin ETF.

Steven McClurg, co-founder and CIO of Valkyrie Investments, revealed in an interview to The Block that the SEC is expected to declare ETFs effective for trading by Wednesday (10), while trading is expected to begin on Thursday (11).

McClurg expects the Valkyrie ETF could receive between $200 million and $400 million from investors, anticipating an initial influx of funds that could reach $4-5 billion in the first few weeks.

However, while ten ETFs can be launched simultaneously, it is not likely that all thirteen candidates will be approved immediately. McClurg highlighted the hard work behind the scenes to launch a Bitcoin ETF, highlighting the complexity of ensuring the connection between crypto and fiat asset custodians.

Bitcoin ETFs start trading on Thursday (10).

The prospects for attracting institutional investors in the US are high, but McClurg points out that retail investors could be the first to join. He also expects a significant migration from the Grayscale Bitcoin Trust (GBTC) to the new ETF.

However, McClurg emphasizes that financial advisors need time to observe and understand the trading of these new products before recommending them to clients. Most require a track record of two to three years before adopting an ETF.

As for the choice of ETF custodian, Coinbase, involved in legal action with the SEC, isn’t concerned about McClurg. He believes Coinbase faces similar challenges as other reputable financial institutions and emphasizes confidence in the company’s custody division.

The battle for lower interest rates among issuers has been an intriguing one, with interest rates ranging from 0.24% to 1.5%. Valkyrie offers a rate of 0.8%. McClurg acknowledges that ETFs can initially operate at a loss and expresses confidence in the Valkyrie ETF’s profitability during its first year of trading.

“The journey for this ETF has been three years and we are committed to moving forward in the long term. The Bitcoin universe is a fascinating place where people will stay for a long time.”concluded McClurg.

VanEcK also says ETFs will start trading on Thursday

Jan van Eck, CEO of VanEck, another manager with an ETF application pending SEC approval, also indicated that trading in these funds could start on Thursday.

During an interview with CNBC next Tuesday (9), Jan van Eck expressed his expectation that spot Bitcoin ETFs will start trading on the 11th. This view was confirmed by other experts, who mentioned the same day as a possible launch date, indicating a short wait after the market closes on Wednesday.

Cathie Wood, CEO of Ark Invest, also commented on the ETF application process, highlighting the difference from previous applications.

She noted that the SEC not only rejected the applications but also conducted detailed investigations into potential issuers. Wood emphasized the level of technical detail involved in the process, indicating that there was a more thorough and exploratory approach this time.

NEW: Spot #Bitcoin ETF starts trading on Thursday, by VanEck CEO Jan van Eck 👀🙌 pic.twitter.com/RhyHmgFyw4

— Bitcoin News (@BitcoinNewsCom) January 9, 2024

Finally, Ark Invest’s CEO added that while there is no guarantee of 100% approval this week, they are quite confident in the possibility.

The Bitcoin market is also reflecting this expectation, up 14% year-to-date and standing above $46,500 at the time of writing this article, following a series of updates on the SEC website yesterday and today (9 ).

All these signs indicate that an approval of Bitcoin ETFs may be in sight, something that many enthusiasts and investors are eagerly anticipating.