FTX fiasco set again the approval of Bitcoin spot ETFs: Valkyrie funding chief

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In episode 11 of Hashing It Out, Cointelegraph’s Elisha Owusu Akyaw speaks to Steven McClurg, the chief funding officer of Valkyrie Investments, concerning the state of Bitcoin (BTC) exchange-traded funds (ETFs) and the best way ahead.

Regulators in america have mounted stiff opposition towards itemizing Bitcoin spot ETFs regardless that Canadian and European regulators have given the inexperienced mild. McClurg factors out that even for the Canadian and European markets, these approvals additionally took a very long time. In response to McClurg, the 2 largest points U.S. regulators have with Bitcoin spot ETFs are custody and market manipulation.

The chief funding officer believes that the custody difficulty would have largely been handled if not for the FTX fiasco, which induced regulators to take a step again to scrutinize whether or not custodians are secure earlier than approving extra Bitcoin funding merchandise. On the second difficulty of market manipulation, McClurg believes that related merchandise in Canada have made a case for why such issues are invalid.

Domestically, corporations like Valkyrie Investments are actively working with regulators to reply main questions surrounding the protection of Bitcoin Spot ETFs. McClurg says Valkyrie has been educating regulators on how custody works and sharing notes on due diligence carried out by the corporate on varied custodians, which picked up crimson flags in a few of the corporations that went bust final yr.

“We carried out due diligence on Celsius, Voyager, BlockFi, and FTX, and we by no means onboarded with them. We determined that they weren’t secure platforms to be concerned with.“