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The first bitcoin ETF application was filed in 2013 by Cameron and Tyler Winklevoss. However, the US regulators have not approved any such application till date.
But now, they appear to be under tremendous pressure, with some of the biggest players in traditional finance entering the fray.
The race heats up for BTC ETFs
In the latest, the world’s largest fund manager – BlackRock – applied on June 15 for the Spot Bitcoin Investment Trust Fund through iShares, the company that manages its own family of ETFs. In less than two weeks, several other companies, including rival asset management giant Fidelity, applied for a spot bitcoin ETF. Other prominent names include Invesco, WisdomTree, Valkyrie Investments and VanEck.
These companies have tried to address the SEC’s concerns, as reflected in the regulator’s lawsuit against Binance and Coinbase. For example, the BlackRock application features a monitored-sharing clause, a first for spot bitcoin ETF applications. Ten days after the SEC’s lawsuits against Binance and Coinbase, BlackRock added a surveillance-sharing clause to its application.
Under the surveillance-sharing agreement, the fund manager will share trading, clearing and client identification details with regulators to avoid fraud and manipulation.
However, news reports indicated that the SEC found BlackRock’s application insufficient and lacking specific details. Subsequently, the asset manager re-filed the application stating that it had appointed Coinbase as its monitoring partner.
Arc Invest, which filed its spot bitcoin ETF application with investment company 21Shares in April, amended its filing on June 28 to add a monitoring-sharing clause. Coinbase is also likely to be a monitoring-sharing partner of Arc Invest.
The growing interest of large players in the Spot BTC ETF has excited the entire crypto market, with BTC maintaining its price around $30K.
Arch Invest Front row: CEO Cathy Wood
Now, if the SEC gives the green signal, whose applications it will approve first, there is a debate going on.
ARK Investments CEO Cathy Wood argues her company is first in line if it gets SEC approval, Bloomberg reports, He added that the agency could take until mid-January for Arc Invest and until March to approve or deny BlackRock’s spot BTC ETF applications.
But clarity will be available long before the court hands down its ruling, which is expected in August, in Grayscale’s lawsuit against the SEC’s decision to reject its spot bitcoin ETF application.
The Grayscale Bitcoin ETF is proposed to be fully backed by BTC in cold storage. Wood argued that approving a bitcoin futures ETF, which includes a swap, and not approving a fully backed spot ETF is contradictory.
Taking all these factors into consideration, the CEO of Arc Invest claims that BlackRock has no edge over Arc Invest.
Binance Free $100 (Exclusive): Use this link to register and get $100 free and 10% off fees on Binance Futures for the first month. (terms).
PrimeXBT SPECIAL OFFER: Use this link to register and enter the code CRYPTOPOTATO50 to receive up to $7,000 on your deposit.
The first bitcoin ETF application was filed in 2013 by Cameron and Tyler Winklevoss. However, the US regulators have not approved any such application till date.
But now, they appear to be under tremendous pressure, with some of the biggest players in traditional finance entering the fray.
The race heats up for BTC ETFs
In the latest, the world’s largest fund manager – BlackRock – applied on June 15 for the Spot Bitcoin Investment Trust Fund through iShares, the company that manages its own family of ETFs. In less than two weeks, several other companies, including rival asset management giant Fidelity, applied for a spot bitcoin ETF. Other prominent names include Invesco, WisdomTree, Valkyrie Investments and VanEck.
These companies have tried to address the SEC’s concerns, as reflected in the regulator’s lawsuit against Binance and Coinbase. For example, the BlackRock application features a monitored-sharing clause, a first for spot bitcoin ETF applications. Ten days after the SEC’s lawsuits against Binance and Coinbase, BlackRock added a surveillance-sharing clause to its application.
Under the surveillance-sharing agreement, the fund manager will share trading, clearing and client identification details with regulators to avoid fraud and manipulation.
However, news reports indicated that the SEC found BlackRock’s application insufficient and lacking specific details. Subsequently, the asset manager re-filed the application stating that it had appointed Coinbase as its monitoring partner.
Arc Invest, which filed its spot bitcoin ETF application with investment company 21Shares in April, amended its filing on June 28 to add a monitoring-sharing clause. Coinbase is also likely to be a monitoring-sharing partner of Arc Invest.
The growing interest of large players in the Spot BTC ETF has excited the entire crypto market, with BTC maintaining its price around $30K.
Arch Invest Front row: CEO Cathy Wood
Now, if the SEC gives the green signal, whose applications it will approve first, there is a debate going on.
ARK Investments CEO Cathy Wood argues her company is first in line if it gets SEC approval, Bloomberg reports, He added that the agency could take until mid-January for Arc Invest and until March to approve or deny BlackRock’s spot BTC ETF applications.
But clarity will be available long before the court hands down its ruling, which is expected in August, in Grayscale’s lawsuit against the SEC’s decision to reject its spot bitcoin ETF application.
The Grayscale Bitcoin ETF is proposed to be fully backed by BTC in cold storage. Wood argued that approving a bitcoin futures ETF, which includes a swap, and not approving a fully backed spot ETF is contradictory.
Taking all these factors into consideration, the CEO of Arc Invest claims that BlackRock has no edge over Arc Invest.
Binance Free $100 (Exclusive): Use this link to register and get $100 free and 10% off fees on Binance Futures for the first month. (terms).
PrimeXBT SPECIAL OFFER: Use this link to register and enter the code CRYPTOPOTATO50 to receive up to $7,000 on your deposit.
