Global investment firm BlackRock's recent filing for a spot Bitcoin Exchange-Traded Fund (ETF) has reignited optimism in the industry and spurred a flurry of similar filings.
Less than a week after BlackRock's application, renowned investment firms WisdomTree and Invesco have followed suit, filing applications for their respective spot Bitcoin ETFs.
New York-based WisdomTree lodged its latest filing for a spot Bitcoin ETF with the United States Securities and Exchange Commission (SEC) on June 21. If approved, the "WisdomTree Bitcoin Trust" would be listed on the Cboe BZX Exchange under the ticker "BTCW." Notably, this is WisdomTree's third attempt to secure approval for a spot Bitcoin ETF. Previous applications submitted in December 2021 and October 2022 were rejected due to the SEC's concerns about fraud and market manipulation.
In their recent filing, WisdomTree, which oversees approximately $83 billion in assets, has expressed willingness to enter into a "surveillance sharing agreement" with a U.S.-based spot trading platform for Bitcoin. This step echoes BlackRock's approach in its recent filing, aiming to mitigate the SEC's concerns by establishing robust surveillance mechanisms to detect and prevent price distortions and manipulation.
Invesco Reactivates Its Application for a Spot Bitcoin ETFShortly after WisdomTree's application, Invesco, a global investment manager, reactivated its application for a similar spot Bitcoin ETF product. The proposed "Invesco Galaxy Bitcoin ETF" aims to be listed on the Cboe BZX exchange, per the 19b-4 document informing the SEC of the proposed rule change.
Invesco's filing emphasizes the benefit of professional custodians and other service providers. This setup, they argue, reduces reliance on "loosely regulated offshore vehicles" and ensures better protection for investors' principal investments in Bitcoin.
Impact of BlackRock's Strong ETF Approval Track RecordBloomberg's senior ETF analyst Eric Balchunas responded to the flurry of filings, attributing the renewed activity to BlackRock's entry into the race. Balchunas highlighted BlackRock's impressive track record, with a 575-1 success rate of ETF approvals by the SEC, adding weight to the firm's application.
Speculations About Fidelity Investments' EntryAmid this resurgence of interest in Bitcoin ETFs, there are rumors that Fidelity Investments, a multi-trillion-dollar fund manager, might also join the fray. Speculation is rife that Fidelity, which manages roughly $4.9 trillion in assets, could file for its own spot Bitcoin ETF or possibly make an offer on Grayscale's GBTC ETF product.
While the SEC has yet to approve a spot Bitcoin ETF, the recent wave of applications, driven by industry giant BlackRock's filing, has renewed hope and sparked a fresh round of interest in this segment of the crypto market.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
