In recent weeks, several prominent traditional finance companies in the United States have resubmitted their applications for spot Bitcoin exchange-traded funds (ETFs). This renewed activity follows BlackRock’s filing, the world’s largest asset manager, with hopes of gaining approval from the United States Securities and Exchange Commission (SEC).
BlackRock’s move on June 15 to submit a spot Bitcoin ETF application has sparked a frenzy among other Bitcoin ETF hopefuls. Despite previous rejections from the SEC, the filing prompted a surge in the price of Bitcoin, surpassing $30,000 and reaching a multi-month high.
A Bitcoin ETF is an investment vehicle that tracks the value of Bitcoin without the need for investors to physically buy and hold the cryptocurrency. It provides a simplified way to gain exposure to Bitcoin’s performance, eliminating the complexities of crypto exchanges, private keys, and wallets.
While the SEC has rejected numerous spot Bitcoin ETF proposals in the past, citing concerns over fraud prevention and investor protection, BlackRock’s application has reignited the optimism of traditional firms in the United States.
Following BlackRock’s application, WisdomTree, a New York-based asset manager, resubmitted its spot Bitcoin ETF filing on June 20. This marks WisdomTree’s third attempt after facing rejections in 2021 and 2022.
Invesco, an investment management company, also submitted its second spot Bitcoin ETF application on the same day as WisdomTree. In partnership with Galaxy Digital, Invesco had initially filed an application in September 2021.
Shortly thereafter, Valkyrie, a financial services firm, joined the queue with its filing for the Valkyrie Bitcoin Fund on June 21. The company’s initial filing had been rejected in late 2021.
VanEck, an investment manager, made another attempt on June 22 after facing rejections in 2021 and March 2023.
On June 29, Fidelity Digital Assets resubmitted its spot Bitcoin ETF application with modifications to align it with BlackRock’s submission.
Additionally, Ark Invest, led by Cathie Wood, and Swiss-based ETF provider 21Shares submitted their third application on April 25 for the ARK 21Shares Bitcoin ETF.
These resubmitted applications from prominent financial institutions demonstrate their continued interest in launching spot Bitcoin ETFs and their confidence in the potential of cryptocurrencies as investment assets. While the SEC’s decision remains uncertain, the growing number of filings indicates a persistent desire within the industry to offer more accessible and regulated avenues for investors to participate in the crypto market.
