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In the past two weeks, a wave of spot Bitcoin exchange-traded fund (ETF) applications has emerged from major traditional finance firms in the United States.
The surge began after BlackRock, the world’s largest asset manager with over $9 trillion in assets under management (AUM), submitted its spot Bitcoin ETF filing with the US Securities and Exchange Commission (SEC) on June 15.
A Bitcoin Spot ETF Frenzy
BlackRock’s move prompted several Bitcoin ETF hopefuls to submit new applications, despite previous rejections from the SEC. The development also triggered a rally in BTC, pushing the leading cryptocurrency past $30,000 to reach a multi-month peak.
An ETF is an investment vehicle that tracks the value of an underlying asset. A Bitcoin ETF would allow investors to gain exposure to the cryptocurrency without the need to physically buy and hold the digital asset. It also eliminates the complexity of navigating crypto exchanges, managing private keys, and using crypto wallets.
A spot Bitcoin ETF directly tracks the price of BTC, whereas a futures Bitcoin ETF follows the price of the asset’s futures contracts.
The SEC has rejected dozens of spot Bitcoin ETF proposals in the past, citing concerns that they did not meet anti-fraud and investor protection standards. The regulator also highlighted the potential for market manipulation of the underlying crypto asset.
However, BlackRock’s application has renewed the hopes of several traditional firms in the US.
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US Companies That Have Filed for Spot Bitcoin ETF
Shortly after BlackRock’s ETF application, which named 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 had previously rejected WisdomTree’s spot filing twice, in 2021 and 2022, making this the firm’s third attempt.
Investment management company Invesco also submitted its second spot Bitcoin ETF application on the same day as WisdomTree. The firm and Galaxy Digital initially filed a joint application in September 2021.
Financial services firm Valkyrie soon joined the queue, filing for the Valkyrie Bitcoin Fund on June 21. The company’s initial filing was rejected around Christmas 2021.
Investment manager VanEck followed with a refiling on June 22, after facing two rejections in 2021 and March 2023.
On June 29, Fidelity Digital Assets filed again for a spot Bitcoin ETF, modifying the document to make it identical to BlackRock’s submission.
Meanwhile, Cathie Wood’s Ark Invest and Swiss-based ETF provider 21Shares submitted their third application on April 25 to launch the ARK 21Shares Bitcoin ETF.
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