Financial firms are once again vying for approval from the U.S. Securities and Exchange Commission (SEC) to launch spot Bitcoin exchange-traded funds (ETFs), following BlackRock’s recent announcement of its intention to introduce such a product.
Stock picker Cathy Wood’s Ark Invest and Swiss-based ETF issuer 21Shares have amended their Bitcoin ETF applications, while asset manager Fidelity is reportedly preparing to file its own spot Bitcoin ETF application, according to trade publication The Block.
The SEC has previously rejected numerous applications for spot Bitcoin ETFs, citing concerns related to anti-fraud measures and investor protection standards.
Let’s take a closer look at the major firms currently awaiting SEC approval for their spot Bitcoin ETF applications:
BLACKROCK – On June 15, the world’s largest asset manager, BlackRock, filed for a Bitcoin ETF. The proposed iShares Bitcoin Trust aims to trade on the Nasdaq exchange and will utilize Coinbase Custody as its cryptocurrency custodian and BNY Mellon as its cash custodian, as stated in the SEC filing.
BlackRock’s filing seeks to address remaining SEC requirements through a surveillance-sharing agreement with the planned listing market, Nasdaq. This agreement would supplement Nasdaq’s own surveillance program by partnering with a Bitcoin spot trading exchange.
ARK AND 21SHARES US – Ark Invest and 21Shares submitted their Bitcoin ETF application, called ARK 21Shares Bitcoin ETF, for the third time on April 25. The ETF, if approved, would trade on the Cboe’s BZX exchange under the ticker ARKB. Coinbase Custody Trust Company is designated as the custodian for this ETF.
The SEC previously rejected Cboe BZX’s filings to list the ETF on January 26, 2023, and March 31, 2022, stating that the exchange did not meet the burden of ensuring its rules prevent fraudulent and manipulative acts, as well as protect investors and the public interest. In response, on June 28, 2023, Cboe BZX amended its rule filing to include a surveillance-sharing agreement with a Bitcoin spot trading exchange.
WISDOMTREE – On June 20, WisdomTree filed for approval to launch the WisdomTree Bitcoin Trust on the Cboe BZX exchange under the symbol BTCW. The trust plans to appoint U.S. Bank, National Association as its custodian.
Previous Cboe BZX rule filings by WisdomTree were rejected by the SEC on October 11, 2022, and December 1, 2021. The SEC stated that the exchange failed to meet the necessary legal obligations in ensuring its rules prevent fraudulent and manipulative acts and protect investors and the public interest.
INVESCO AND GALAXY DIGITAL – Invesco has reactivated its September 2021 application to launch the Invesco Galaxy Bitcoin ETF on the Cboe’s BZX exchange.
VANECK – VanEck resubmitted its application on June 22 for approval to launch the VanEck Bitcoin Trust on Cboe’s BZX exchange.
The SEC rejected rule filings by the Cboe BZX exchange to list and trade shares of a VanEck Bitcoin trust on March 10, 2023, and November 12, 2021. The SEC cited the exchange’s failure to meet the burden of preventing fraudulent and manipulative acts, as well as protecting investors and the public interest.
VALKYRIE DIGITAL ASSETS – Valkyrie filed with the SEC on June 21 to launch the Valkyrie Bitcoin Fund on the Nasdaq, with the ticker symbol BRRR.
Previously, NYSE Arca’s filing to list a spot Bitcoin ETF by Valkyrie was rejected by the SEC on December 26, 2021. The SEC determined that the exchange did not fulfill its legal obligations to prevent fraudulent and manipulative acts or protect investors and the public interest.
As financial firms persist in their pursuit of spot Bitcoin ETF approval, the regulatory landscape surrounding these investment vehicles continues to evolve. Investors eagerly await the SEC’s decision, which could have significant implications for the broader adoption and accessibility of Bitcoin as an investment option.
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