BlackRock, the world’s largest asset manager, lodged an application for a spot Bitcoin ETF on June 15, sparking a wave of similar filings and renewing optimism in the sector.
New York-based WisdomTree followed suit by filing for its “WisdomTree Bitcoin Trust” to be listed on the Cboe BZX Exchange under the ticker “BTCW”.
WisdomTree has filed for spot bitcoin ETF h/t @NateGeraci pic.twitter.com/JwXj8rTs2X
— Eric Balchunas (@EricBalchunas) June 20, 2023
This is WisdomTree’s third attempt, with its previous applications rejected by the SEC over concerns of fraud and market manipulation.
BlackRock’s filing stands out as it proposes a “surveillance sharing agreement” with the Chicago Mercantile Exchange (CME) futures markets to monitor market conditions and price movements continuously. This mechanism aims to prevent price distortions and manipulative efforts.
WisdomTree echoed this approach in its filing, willing to enter a similar agreement with a US-based spot trading platform for Bitcoin.
Shortly after WisdomTree, global investment manager Invesco reactivated its application for a comparable product. According to their filing, a spot Bitcoin ETF that uses professional custodians and service providers removes the need for investors to rely on loosely regulated offshore vehicles, further safeguarding their Bitcoin investments.
Bloomberg’s senior ETF analyst Eric Balchunas noted that BlackRock “breathed new life into the race.”
Given BlackRock’s impressive record of getting ETFs approved by the regulator, this move bodes well for crypto investors.
Rumours are also circulating that Fidelity Investments, a multi-trillion-dollar fund manager, may join the fray for spot Bitcoin ETFs or consider an offer on Grayscale‘s GBTC ETF product, further fueling the anticipatory climate in the sector.
As the industry awaits the SEC’s response to these filings, the optimism is palpable. The potential approval of these spot Bitcoin ETFs could usher in a new era for crypto investment, making it more accessible and safer for all investors.
