Valkyrie, a Nashville-based firm, has joined the growing list of issuers reapplying for an exchange-traded fund (ETF) that directly invests in Bitcoin. The US Securities and Exchange Commission (SEC) had previously deemed the initial documents insufficient, prompting Valkyrie to make the necessary revisions. In their recent filing, Valkyrie stated that Coinbase Global Inc. would provide market surveillance support for their proposed Bitcoin fund. This move addresses the SEC's concerns about the lack of clarity in previous filings. Additionally, the filing revealed that Nasdaq, the exchange on which Valkyrie plans to list their ETF if approved, had executed a term sheet with Coinbase on June 30. The purpose of this agreement is to establish a surveillance-sharing arrangement. Bloomberg Intelligence ETF analyst James Seyffart expressed his interest in Valkyrie's reapplication, stating that they were among the few Bitcoin ETF filers from the recent past that had not submitted a new 19b-4 in this wave. Valkyrie has previously launched a Bitcoin futures ETF, the Valkyrie Bitcoin Strategy ETF, which trades under the ticker BTF. One crucial factor in gaining SEC approval for a spot Bitcoin ETF is crypto market surveillance. The implementation of effective surveillance measures can significantly reduce instances of fraud and market manipulation. These concerns have been the primary reasons for the SEC rejecting approximately 30 spot Bitcoin ETF applications thus far. Following BlackRock's filing for a Bitcoin ETF in mid-June, numerous other firms have filed or refiled for similar products, fueled by market optimism that the SEC might reverse its longstanding stance against spot Bitcoin ETFs. It is worth noting that the SEC has already allowed ETFs tied to Bitcoin futures in 2021 and recently approved a leveraged Bitcoin futures fund. BlackRock's initial filing not only triggered a race among other issuers for similar applications but also contributed to a broader rally in cryptocurrencies. Bitcoin, in particular, has surged over 10% in the past month and has witnessed an overall increase of more than 80% since the beginning of the year. The potential approval of a spot Bitcoin ETF has generated excitement among digital asset enthusiasts, as it could enhance accessibility for everyday investors.