Companies Queue Up for Spot Bitcoin ETF: Following BlackRock’s Path in Pursuit of SEC Approval

• Several U.S. finance giants have refiled their applications for Bitcoin spot ETFs in the wake of BlackRock’s submission to the U.S. Securities and Exchange Commission (SEC).
• Despite past SEC rejections, BlackRock’s move has ignited fresh hope for several U.S. traditional finance firms eyeing the Bitcoin ETF landscape.

The realm of cryptocurrency has witnessed a flurry of renewed interest from major traditional finance players in the U.S., all racing to secure their Bitcoin exchange-traded fund (ETF) foothold. This wave of enthusiasm follows the footsteps of BlackRock, the world’s largest asset manager, overseeing over $9 trillion in assets under management (AUM), which filed its Bitcoin spot ETF application with the U.S. Securities and Exchange Commission (SEC) on June 15.

Surge in Bitcoin Spot ETF Applications

BlackRock’s bold move has served as a catalyst, encouraging several Bitcoin ETF aspirants to revisit their applications. This renewed vigor also sparked a Bitcoin rally, pushing the leading cryptocurrency beyond the $30,000 mark to reach a multi-month high.

For those less familiar, an ETF is an investment instrument that mirrors the value of an underlying asset. A Bitcoin ETF would thus provide investors with exposure to the cryptocurrency without the need to directly purchase and secure the digital asset. This circumvents the complexities associated with crypto exchanges, private keys, and digital wallets. While a spot Bitcoin ETF tracks the actual price of Bitcoin, a futures Bitcoin ETF shadows the price of Bitcoin’s future contracts.

The SEC has previously rejected numerous Bitcoin spot ETF applications, citing non-compliance with anti-fraud and investor protection regulations, along with concerns about potential market manipulation of the underlying cryptocurrency. However, the landscape appears to be shifting with BlackRock’s recent filing.

Companies Joining the Bitcoin Spot ETF Race

In the aftermath of BlackRock’s ETF application, several U.S. companies followed suit. WisdomTree, a New York-based asset manager, refiled its application on June 20, marking its third attempt after two prior rejections. Similarly, investment management company Invesco made a second submission for a Bitcoin spot ETF.

Financial services firm Valkyrie submitted its application for the Valkyrie Bitcoin Fund on June 21, after its initial rejection in late 2021. Investment manager VanEck also reentered the arena on June 22 after two prior rejections.

Fidelity Digital Assets made another attempt on June 29, aligning its filing to match BlackRock’s. Concurrently, Ark Invest and Swiss-based ETF provider 21Shares filed their third application to launch the ARK 21Shares Bitcoin ETF.