The race to launch the United States’ first-ever spot-traded Bitcoin exchange-traded fund (ETF) is in full swing, with a group of financial heavyweights vying for the opportunity to reshape the crypto investing landscape.
A Bit Of A Background
The SEC gave the green light to a Bitcoin-linked Futures ETF back in October 2021. However, the buzz these days revolves around spot Bitcoin ETFs. Grayscale’s recent legal triumph in challenging the SEC’s scrutiny of its spot Bitcoin ETF proposal injected a fresh sense of optimism regarding the possible approval of these investment options. Let’s delve into the significant players in this high-stakes competition.
Meet The Contenders
BlackRock, the financial titan managing a staggering $8 trillion in assets on June 15, 2023 filed for a spot Bitcoin ETF. What makes this move even more intriguing is BlackRock’s CEO, Larry Fink, who had previously voiced skepticism about Bitcoin. BlackRock selected Coinbase as the crypto custodian and spot market data provider.
WisdomTree initially dipped its toes in the Bitcoin ETFs arena by filing on December 8, 2021. However, it hit a roadblock with an SEC rejection in 2022. WisdomTree refiled their application on July 19, 2023.
Valkyrie Investments, a seasoned asset management firm, first ventured into the world of spot Bitcoin ETFs back in January 2021 and resubmitted their application in June 21, 2023. Their proposed ETF is pegged to the Chicago Mercantile Exchange (CME) for reference pricing, with Xapo as its crypto custodian.
ARK Invest collaborated with Swiss-based ETF provider 21Shares, submitting an application for the ARK 21Shares Bitcoin ETF in June 2023. If approved, they intend to launch their Bitcoin ETF on the Chicago Board Options Exchange (Cboe) BZX Exchange.
Fidelity Investments embarked on its quest for a spot Bitcoin ETF back in 2021. On July 19, 2023, they raised the stakes with the Wise Origin Bitcoin Trust, underscoring their dedication to making cryptocurrency accessible to everyday investors.
Invesco and Galaxy Digital jointly entered the fray with their application on September 22, 2021, aiming to create a “physically backed” Bitcoin ETF, and made a fresh filing in July 2023.
Fund manager GlobalX joined the Bitcoin ETF race in 2021 and refiled its application in August 2023. GlobalX selected Coinbase as its surveillance-sharing partner.
Franklin Templeton, overseeing assets exceeding $1.4 trillion, entered the fray with a filing on September 12, 2023. They intend to leverage Coinbase as Bitcoin custodian.
In light of Grayscale’s recent legal victory and the wave of renewed applications that followed, ETF analysts are optimistic that SEC approval of a Bitcoin ETF is imminent, giving everyday investors an additional way to diversify their crypto currency investment strategies.