Several investment firms have recently filed applications for spot bitcoin exchange-traded funds (ETFs), following BlackRock's filing for a similar product on June 15. WisdomTree, a New York-based asset management fund, is the latest firm to apply for a spot bitcoin ETF. In its June 21 filing with the SEC, WisdomTree requested permission to list its "WisdomTree Bitcoin Trust" on the Cboe BZX exchange under the ticker symbol "BTCW." This is WisdomTree's third attempt at obtaining approval for a Bitco in spot ETF, after previous rejections by the SEC in December 2021 and October 2022. WisdomTree manages approximately $83 billion in assets.
One notable difference in BlackRock's recent filing is its intention to enter into a "supervisory sharing agreement" with the Chicago Mercantile Exchange (CME) futures market. BlackRock's proposal cites the SEC's approval of Teucrium's bitcoin futures fund, which emphasizes d the comprehensive monitoring of futures market conditions and price movements by the CME Group to detect and prevent price distortions resulting from manipulation practices. WisdomTree's filing also expresses a willingness to enter into a similar monitoring agreement with a US-based bitcoin spot trading platform.
Shortly after WisdomTree's application, global investment management firm Invesco "reactivated" its own application for a spot bitcoin ETF. Invesco has requested that its "Invesco Galaxy Bitcoin ETF" product be listed on the Cboe BZX exchange, according to a fi ling notifying the SEC of the proposed rule change. The document highlights how spot bitcoin ETFs using professional customers and service providers make it easier for investors to protect their exposure to bitcoin without relying on lightly regulated offshore vehicles.
While the SEC has yet to approve a spot bitcoin ETF, Eric Balchunas, senior ETF analyst at Bloomberg, believes that BlackRock's entry has injected new life into the race. Balchunas also noted that investors in cryptocurrencies have reason to be optimistic about BlackRock's move, given the firm's track record of successfully obtaining ETF approval from regulators. Furthermore, rumors suggest that Fidelity Investments, a multi-trillion dollar fund manager with approximately $4.9 trillion in assets, may be considering applying for its own spot bitcoin ETF. There is speculation that Fidelity Investments may also be interested in acquiring Grayscale's GBTC ETF product.
These recent developments indicate the growing interest among investment firms in offering spot bitcoin ETFs. While awaiting regulatory approval, these firms are positioning themselves to meet the demand for regulated investment vehicles that provide exposure to bitcoin without relying on offshore alternatives.
