Blackrock’s Spot Bitcoin ETF Renews Optimism, Sparks Wave of New Filings
Following BlackRock’s application for a spot Bitcoin ETF, investment firms WisdomTree and Invesco have joined the race. These filings have rekindled optimism and triggered a new wave of applications, signaling a promising future for cryptocurrency investments.
WisdomTree Lodges New Filing for Bitcoin ETF
WisdomTree, a New York-based asset management fund, is the latest firm to lodge a new filing for a spot Bitcoin ETF. The firm’s “WisdomTree Bitcoin Trust” aims to be listed on the Cboe BZX Exchange under the ticker “BTCW”. However, the SEC has previously rejected WisdomTree’s applications twice over concerns of fraud and market manipulation.
BlackRock’s Strategy: A Surveillance Sharing Agreement
Distinguishing itself from previous filings, BlackRock plans to establish a “surveillance sharing agreement” with the Chicago Mercantile Exchange (CME) futures markets to monitor market conditions and prevent price distortions. This strategy is anticipated to address the SEC’s concerns, enhancing the odds for approval.
Invesco Reactivates Its Bitcoin ETF Application
Shortly after WisdomTree’s application, global investment manager Invesco also reactivated its application for a spot Bitcoin ETF. Their product, “Invesco Galaxy Bitcoin ETF”, aims to circumvent loosely regulated offshore vehicles, providing investors a secure means of investing in Bitcoin.
The Prospects of Spot Bitcoin ETFs: A Ray of Hope?
While the SEC has yet to approve a single spot Bitcoin ETF, the recent filings by BlackRock, WisdomTree, and Invesco have brought renewed hope for such products. Bloomberg senior ETF analyst Eric Balchunas even notes that “BlackRock breathed new life into the race.”
Rumors of Fidelity’s Entrance into the Race
Adding fuel to the fire, rumors are swirling that Fidelity Investments, a multi-trillion-dollar fund manager, might also jump into the spot Bitcoin ETF fray. Whether by filing its own application or potentially making an offer on Grayscale’s GBTC ETF product, Fidelity’s entrance would certainly heat up the competition.
As the race for spot Bitcoin ETFs intensifies, crypto enthusiasts are keenly watching the SEC’s responses to these applications. Will this wave of filings lead to the era of spot Bitcoin ETFs? Only time will tell.