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Over the past two weeks, there has been a spate of spot bitcoin exchange-traded fund (ETF) applications from various traditional finance giants in the United States.
The frenzy began after BlackRock, the world’s largest asset manager with over $9 trillion in AUM, submitted its Spot Bitcoin ETF filing with the United States Securities and Exchange Commission (SEC) on June 15.
A bitcoin spot etf craze
BlackRock’s move prompted several bitcoin ETF hopefuls to file new applications, despite repeated rejections by the SEC in the past. The development also fueled the BTC rally, which led the leading crypto asset to exceed $30,000 and hit a multi-month peak.
ETF is an investment vehicle that tracks the value of an underlying asset. The Bitcoin ETF will introduce investors to cryptocurrencies without the burden of physically buying and holding digital assets. It also relieves them from the stress of understanding the intricacies of crypto exchanges, private keys and crypto wallets.
The Spot Bitcoin ETF directly tracks the price of BTC, while the Futures Bitcoin ETF will follow the price of futures contracts for the asset.
The SEC has rejected dozens of spot bitcoin ETFs in the past, arguing that the proposals did not meet anti-fraud and investor protection standards. The regulator also mentioned the possibility of market manipulation of the underlying crypto asset.
However, BlackRock’s application has renewed the hopes of many traditional firms in the US
US Companies That Have Applied for the Spot Bitcoin ETF
Shortly after BlackRock’s ETF application, which mentioned Coinbase Custody as its crypto custodian and BNY Mellon as its cash custodian, New York-based asset manager WisdomTree resubmitted its filing for approval on June 20. The SEC previously rejected WisdomTree’s spot filings twice in 2021. 2022; Hence, this is the third attempt of the firm.
Investment management company Invesco also submitted its second-ranked Bitcoin ETF application on the same day as WisdomTree. The firm and Galaxy Digital initially filed a joint application in September 2021.
Shortly after, financial services firm Valkyrie rejoined the queue, filing for the Valkyrie Bitcoin Fund on 21 June. The company’s initial filing was rejected around Christmas 2021.
This was followed by a refilling of investment manager VanEck on 22 June after two rejections in 2021 and March 2023.
On June 29, Fidelity Digital Assets tried again with a spot bitcoin ETF filing after amendments were made to make the document more similar to BlackRock’s submission.
Meanwhile, Cathy Wood’s Arc Invest and Swiss-based ETF provider 21Shares Presented Their third application on April 25 to launch the ARK 21Shares Bitcoin ETF.
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.
Over the past two weeks, there has been a spate of spot bitcoin exchange-traded fund (ETF) applications from various traditional finance giants in the United States.
The frenzy began after BlackRock, the world’s largest asset manager with over $9 trillion in AUM, submitted its Spot Bitcoin ETF filing with the United States Securities and Exchange Commission (SEC) on June 15.
A bitcoin spot etf craze
BlackRock’s move prompted several bitcoin ETF hopefuls to file new applications, despite repeated rejections by the SEC in the past. The development also fueled the BTC rally, which led the leading crypto asset to exceed $30,000 and hit a multi-month peak.
ETF is an investment vehicle that tracks the value of an underlying asset. The Bitcoin ETF will introduce investors to cryptocurrencies without the burden of physically buying and holding digital assets. It also relieves them from the stress of understanding the intricacies of crypto exchanges, private keys and crypto wallets.
The Spot Bitcoin ETF directly tracks the price of BTC, while the Futures Bitcoin ETF will follow the price of futures contracts for the asset.
The SEC has rejected dozens of spot bitcoin ETFs in the past, arguing that the proposals did not meet anti-fraud and investor protection standards. The regulator also mentioned the possibility of market manipulation of the underlying crypto asset.
However, BlackRock’s application has renewed the hopes of many traditional firms in the US
US Companies That Have Applied for the Spot Bitcoin ETF
Shortly after BlackRock’s ETF application, which mentioned Coinbase Custody as its crypto custodian and BNY Mellon as its cash custodian, New York-based asset manager WisdomTree resubmitted its filing for approval on June 20. The SEC previously rejected WisdomTree’s spot filings twice in 2021. 2022; Hence, this is the third attempt of the firm.
Investment management company Invesco also submitted its second-ranked Bitcoin ETF application on the same day as WisdomTree. The firm and Galaxy Digital initially filed a joint application in September 2021.
Shortly after, financial services firm Valkyrie rejoined the queue, filing for the Valkyrie Bitcoin Fund on 21 June. The company’s initial filing was rejected around Christmas 2021.
This was followed by a refilling of investment manager VanEck on 22 June after two rejections in 2021 and March 2023.
On June 29, Fidelity Digital Assets tried again with a spot bitcoin ETF filing after amendments were made to make the document more similar to BlackRock’s submission.
Meanwhile, Cathy Wood’s Arc Invest and Swiss-based ETF provider 21Shares Presented Their third application on April 25 to launch the ARK 21Shares Bitcoin ETF.
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.
