- June 22, 2023
- Posted by: [email protected]
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The recent move by investment giant BlackRock to apply for a spot Bitcoin exchange-traded fund (ETF) has sparked a flurry of activity, with two other investment managers, WisdomTree and Invesco, filing for their own spot Bitcoin ETFs shortly after.
On June 21, WisdomTree, a New York-based asset management fund, filed a request with the US Securities and Exchange Commission (SEC). The SEC petition sought permission from the SEC to list its “WisdomTree Bitcoin Trust” on the Cboe BZX Exchange under the ticker symbol “BTCW.” WisdomTree is making its third effort to launch a spot Bitcoin ETF, with earlier applications rejected in December 2021 and October 2022 due to fraud and market manipulation concerns. WisdomTree now manages around $83 billion in assets.
One notable difference in BlackRock’s filing is its intention to establish a “surveillance sharing agreement” with the Chicago Mercantile Exchange (CME) futures markets. BlackRock’s proposal references the SEC’s approval of a Bitcoin futures fund by Teucrium, highlighting the CME’s ability to monitor market conditions and detect price distortions caused by manipulative efforts.
WisdomTree’s filing also echoes this sentiment, expressing its willingness to enter into a surveillance agreement with a US-based spot trading platform for Bitcoin. Shortly after WisdomTree’s filing, global investment manager Invesco “reactivated” its application for a similar product. Invesco’s 19b-4 document requested SEC approval for its “Invesco Galaxy Bitcoin ETF” to be listed on the Cboe BZX exchange. The filing emphasizes the advantages of a spot Bitcoin ETF that utilizes professional custodians and service providers, offering investors a way to protect their principal investments in Bitcoin without relying on loosely regulated offshore vehicles.
While the SEC has yet to approve a spot Bitcoin ETF, BlackRock’s move has injected new energy into the race. Bloomberg senior ETF analyst Eric Balchunas noted that BlackRock’s entry has “breathed new life” into the competition, pointing out that the investment firm has a successful track record of obtaining ETF approvals from the regulator.
In addition to the recent filings by WisdomTree and Invesco, rumors are circulating that Fidelity Investments, a multi-trillion-dollar fund manager overseeing $4.9 trillion in assets, may also join the frenzy for spot Bitcoin ETFs. Speculation suggests that Fidelity may file for its own spot Bitcoin ETF or potentially make an offer for Grayscale’s GBTC ETF product, as suggested by Arch Public co-founder AP_Abacus.
As the race for spot Bitcoin ETF approval heats up, market participants and crypto investors have reason to be optimistic, buoyed by the entry of major financial players like BlackRock and the potential participation of Fidelity Investments. The growing interest in spot Bitcoin ETFs underscores the increasing demand for regulated investment vehicles that enable investors to engage with cryptocurrencies while ensuring greater protection for their investments.
