The announcement of BlackRock’s Bitcoin ETF application has sent shockwaves through the crypto industry. As well as sparking a significant rise in cryptocurrency deposits, the move has rekindled optimism among financial players that have long yearned for such an investment opportunity. Firms like Bitwise, WisdomTree and Invesco have once again jumped into the fray looking to grab their slice of the pie.
Market players anticipate SEC validation of Bitcoin spot ETF
Demand for spot Bitcoin ETF filed by BlackRock, one of the world’s largest fund managers, has aroused keen interest and optimism among investors prompting other financial players to take action. ETF (Exchange Traded Funds) has been used for over twenty years by institutional investors (private banks, pension funds, public bodies). This financial tool reproduces the evolution of the value of an index, in this case the price of Bitcoin spot.
WisdomTree, an asset management company based in New York, recently submitted a request to the Securities and Exchange Commission to register its ”WisdomTree Bitcoin Trust ” on the Cboe BZX Exchange with the ticker “BTCW” to facilitate investors’ access to Bitcoin. Note that a ticker is a unique series of letters assigned to a security for trading purposes on financial markets.
Although WisdomTree has had two of its previous applications for a Bitcoin spot ETF rejected in December 2021 and October 2022 due to concerns about fraud and market manipulation. However, the company remains determined to gain approval this time around. It is ready to enter into a monitoring agreement with an operator of a spot trading platform based in the United States, which could boost regulators’ confidence in the proposal.
Likewise, the asset manager Invesco with around $1.5 trillion in assets under management soon submitted its own similar application. It sought SEC approval for its ”Invesco Galaxy Bitcoin ETF ” on the Cboe BZX highlighting the benefits of Bitcoin spot ETF, which enable investors to protect their core Bitcoin investments by avoiding lightly regulated offshore vehicles.
The cryptocurrency fund Bitwise has also applied for a Bitcoin spot ETF despite being turned down last year by the US regulator. This hasn’t discouraged him from trying again. If accepted, the Bitcoin spot ETF from Bitwise would be offered on the New York Stock Exchange (NYSE).
Fidelity Investments also gets ready with its Bitcoin spot ETF
Fidelity Investments, a leading fund manager, plans to launch its own Bitcoin ETF to meet investor demand. According to Abacus, co-founder of Arch Public, Fidelity plans to invest $4.9 billion in its Bitcoin ETF. In addition, Fidelity Investments is also considering acquiring Grayscale GBTC ETF according to information provided by Abacus…
The introduction of the Bitcoin spot ETF by major financial players represents a a windfall effect for the development of the cryptocurrency ecosystem. Could this be the golden opportunity to further consolidate Bitcoin’s position as a leading financial asset? While the future of Bitcoin ETF is still in the hands of the SEC, the industry is confident that BlackRock’s application will be approved given its very strong track record in approved exchange-traded funds.
Coming from a journalism university background, I came across Bitcoin and cryptocurrencies not long ago.
The potential of the Blockchain seduced me and I made it my research topic.