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Crypto goes TradFi as Valkyrie joins Bitcoin ETF Rush with $BRRR Ticker

Last Updated June 26, 2023 7:59 AM
Omar Elorfaly
Last Updated June 26, 2023 7:59 AM

Key Takeaways

  • Valkyrie files for a Bitcoin fund under the name BRRR
  • Blackrock’s spot Bitcoin trading ETF opened the door for big money in Bitcoin
  • Is the financial world going full circle, back to TradFi?

First, we had Traditional Finance (TradFi), where financial institutions, such as banks, insurance companies, and stock markets listed their funds under strict government-regulated systems. Then, since the development of cryptocurrencies, the world witnessed the creation of Decentralized Finance (DeFi), where various entities controlled the flow of finances in the market independently from the control of banks and governments.

Valkyrie Investments, a financial services firm, aims to bridge the gap between the two worlds by filing  for the Valkyrie Bitcoin Fund (BRRR) with the US Securities and Exchange Commission. 

The company’s filing states that “the Trust will hold bitcoin and will value its Shares daily based on the value of bitcoin as reflected by the Index, which is an independently calculated value based on an aggregation of executed trade flow of major bitcoin spot exchanges.”

Going Backwards?

Ever since Blackrock, the world’s biggest asset management firm, filed for a spot Bitcoin trading ETF, major financial institutions have been pouring into the crypto market, expecting a gold rush. Three major institutions – Fidelity Digital Assets, Citadel Securities, and Charles Schwab – have even backed the launch of a new crypto exchange, EDX Markets, focusing only on the cryptocurrencies the SEC approves of.

The SEC has made its stance very clear on the tokens it will let exchanges work with; Bitcoin, Bitcoin Cash, LiteCoin, and Ethereum. Ever since, one big corporation after another has been rushing to get a piece of the action, either by creating crypto-specific funds, like Valkyrie or by creating their own exchanges, like Blackrock and EDXM.

Valkyrie, through its ticker $BRRR is making it clear that the DeFi world is likely to be taken over by the old guard of TradFi. With these financial institutions likely taking over the crypto market due to their sheer financial power, the DeFi market is under the threat of no longer becoming decentralized. Naturally, holders of most tokens of the market are bound to dictate not only the pricing but also the flow of supply and demand, which feels quite reminiscent of the old TradFi system.

Crypto Meme History

Valkyrie’s fund name, BRRR refers to the sound a money-counting machine makes. Crypto enthusiasts often used “Brrr” to refer to a point when the price of the tokens they hold are going up, signifying an increase in wealth, additionally, it can be seen as a stab at the Fed and its money-printing. And, it’s this kind of humor that reflects the individual, decentralized nature of the crypto market. 

Some of the most successful tokens to hit the market fall under the category of MEMECoins. Perhaps the most famous of all was DogeCoin, the token that was created to make fun of the whole industry. Ironically enough, DogeCoin, at least at some point, became one of the most promising cryptocurrencies to invest in.

Recently, a certain Memecoin headlined the news when it was at the receiving end of an attack by Elon Musk. BOB is a token that based its value on social interaction through a once-popular Twitter account under the name @explainthisbob. Unfortunately, Twitter CEO Elon Musk deemed the account to be a bot, eventually suspending it. Ironically, Musk, at one point, tweeted, “I love Bob”.