Invesco and WisdomTree Join BlackRock in Pursuit of Spot Bitcoin ETF Approval
- Bitcoin surges amid renewed interest in ETFs from Wall Street's giants.
- Will Invesco and WisdomTree receive approval from the SEC this time around?
Last week, BlackRock, the world's largest asset manager, filed an application to register a spot Bitcoin exchange-traded fund (ETF Exchange-Traded Fund (ETF) An exchange-traded fund (ETF) is a collection of a mixture assets, i.e. stocks, commodities, bonds, or cryptocurrencies that tracks an index or underlying portfolio of investments.Of note, an ETF functions an arbitrage mechanism that is designed to keep it trading close to its net asset value. Most tradable ETFs track a specific index. This most commonly mirrors a stock or bond index. The popularity of ETFs has grown in recent years and are seen as an attractive investment due to its low cost, e An exchange-traded fund (ETF) is a collection of a mixture assets, i.e. stocks, commodities, bonds, or cryptocurrencies that tracks an index or underlying portfolio of investments.Of note, an ETF functions an arbitrage mechanism that is designed to keep it trading close to its net asset value. Most tradable ETFs track a specific index. This most commonly mirrors a stock or bond index. The popularity of ETFs has grown in recent years and are seen as an attractive investment due to its low cost, e Read this Term) in the United States, spurring two more major issuers to pursue similar financial instruments. Yesterday (Tuesday), both Invesco and WisdomTree announced their intention to create their own spot Bitcoin ETFs.
Despite falling short of its previous attempts, BlackRock's recent move has boosted hopes that US regulators might finally approve such an instrument this time around.
Invesco Applies for Bitcoin ETF for the First Time since 2021
Invesco, an asset management company with $1.4 trillion under its wings, is seeking approval for a Bitcoin ETF for the first time since 2021. The company initially attempted to establish a spot Bitcoin exchange-trade fund in 2021 in collaboration with Galaxy Digital. Although unsuccessful in establishing a market-based instrument at the time, Invesco is now attempting to introduce this instrument again.
The Securities and Exchange Commission (SEC Securities and Exchange Commission (SEC) The Securities and Exchange Commission (SEC) is one of the most widely known independent authorities in the United States. The SEC has a wide range of responsibilities, helping police markets and curbing against abuse. This includes enforcing federal securities laws, proposing securities rules, and regulating the US’ stock and options exchanges.As one of the paramount regulatory authorities in the US, the SEC is responsible for the oversight of public companies in the aforementioned segments.Wha The Securities and Exchange Commission (SEC) is one of the most widely known independent authorities in the United States. The SEC has a wide range of responsibilities, helping police markets and curbing against abuse. This includes enforcing federal securities laws, proposing securities rules, and regulating the US’ stock and options exchanges.As one of the paramount regulatory authorities in the US, the SEC is responsible for the oversight of public companies in the aforementioned segments.Wha Read this Term) has repeatedly rejected proposals for spot Bitcoin ETFs, albeit approving similar instruments based on cryptocurrency futures. Currently, Invesco argues that the absence of a spot Bitcoin ETF is driving retail investors towards more risky alternatives, such as the now-defunct FTX trading platform or exchanges like Binance and Coinbase, which are grappling with regulatory issues in the US.
WisdomTree Is the Next Company in Line
WisdomTree is also in the queue and looking to launch an ETF called the WisdomTree Bitcoin Trust. The ETF is planned to be listed under the symbol BTCW on the Cboe BZX Exchange. Like Invesco, WisdomTree submitted a similar application in 2021, which was ultimately rejected by the SEC in 2022, following months of delay in issuing a final decision.
Following BlackRock's lead, Bitwise Asset Management is applying for a spot Bitcoin ETF, having submitted their application on June 16. Additionally, there are rumors circulating in the industry that Fidelity, another asset management firm, will soon make a 'seismic move' in the digital asset market.
UPDATE: @DigitalAssets and @Fidelity is about to make a seismic move in crypto via both $BTC and $ETH.
— Andrew (@AP_Abacus) June 18, 2023
Sources expect Fidelity to either make a bid for @Grayscale or quickly launch their own spot #bitcoin ETF. One or both are coming, soon.
**Blackrock and Fidelity will own…
Industry experts believe that Fidelity, like BlackRock, could seek to establish a cryptocurrency ETF, aiming to capture some market share from Coinbase and Binance, both of which are embroiled in legal disputes with the SEC.
Bitcoin Gains from Wall Street Giants' Support
As a result of the wave of applications for cryptocurrency ETFs, the price of Bitcoin has been on a dynamic rise. On Wednesday, Bitcoin is testing at around $29,000, which is its strongest price in over a month. During Tuesday's session, the value of the oldest cryptocurrency increased 5.5%, marking its most robust single-day gain in two weeks. Previously, such a dynamic move was seen in March 2023.
Wall Street giants have just submitted applications to the SEC to establish new financial instruments, and no one promises that the situation will differ from two years ago. However, the current licensing pressure on the industry in the US might prompt regulators to view regulated providers of financial instruments in a more favorable light.
Last week, BlackRock, the world's largest asset manager, filed an application to register a spot Bitcoin exchange-traded fund (ETF Exchange-Traded Fund (ETF) An exchange-traded fund (ETF) is a collection of a mixture assets, i.e. stocks, commodities, bonds, or cryptocurrencies that tracks an index or underlying portfolio of investments.Of note, an ETF functions an arbitrage mechanism that is designed to keep it trading close to its net asset value. Most tradable ETFs track a specific index. This most commonly mirrors a stock or bond index. The popularity of ETFs has grown in recent years and are seen as an attractive investment due to its low cost, e An exchange-traded fund (ETF) is a collection of a mixture assets, i.e. stocks, commodities, bonds, or cryptocurrencies that tracks an index or underlying portfolio of investments.Of note, an ETF functions an arbitrage mechanism that is designed to keep it trading close to its net asset value. Most tradable ETFs track a specific index. This most commonly mirrors a stock or bond index. The popularity of ETFs has grown in recent years and are seen as an attractive investment due to its low cost, e Read this Term) in the United States, spurring two more major issuers to pursue similar financial instruments. Yesterday (Tuesday), both Invesco and WisdomTree announced their intention to create their own spot Bitcoin ETFs.
Despite falling short of its previous attempts, BlackRock's recent move has boosted hopes that US regulators might finally approve such an instrument this time around.
Invesco Applies for Bitcoin ETF for the First Time since 2021
Invesco, an asset management company with $1.4 trillion under its wings, is seeking approval for a Bitcoin ETF for the first time since 2021. The company initially attempted to establish a spot Bitcoin exchange-trade fund in 2021 in collaboration with Galaxy Digital. Although unsuccessful in establishing a market-based instrument at the time, Invesco is now attempting to introduce this instrument again.
The Securities and Exchange Commission (SEC Securities and Exchange Commission (SEC) The Securities and Exchange Commission (SEC) is one of the most widely known independent authorities in the United States. The SEC has a wide range of responsibilities, helping police markets and curbing against abuse. This includes enforcing federal securities laws, proposing securities rules, and regulating the US’ stock and options exchanges.As one of the paramount regulatory authorities in the US, the SEC is responsible for the oversight of public companies in the aforementioned segments.Wha The Securities and Exchange Commission (SEC) is one of the most widely known independent authorities in the United States. The SEC has a wide range of responsibilities, helping police markets and curbing against abuse. This includes enforcing federal securities laws, proposing securities rules, and regulating the US’ stock and options exchanges.As one of the paramount regulatory authorities in the US, the SEC is responsible for the oversight of public companies in the aforementioned segments.Wha Read this Term) has repeatedly rejected proposals for spot Bitcoin ETFs, albeit approving similar instruments based on cryptocurrency futures. Currently, Invesco argues that the absence of a spot Bitcoin ETF is driving retail investors towards more risky alternatives, such as the now-defunct FTX trading platform or exchanges like Binance and Coinbase, which are grappling with regulatory issues in the US.
WisdomTree Is the Next Company in Line
WisdomTree is also in the queue and looking to launch an ETF called the WisdomTree Bitcoin Trust. The ETF is planned to be listed under the symbol BTCW on the Cboe BZX Exchange. Like Invesco, WisdomTree submitted a similar application in 2021, which was ultimately rejected by the SEC in 2022, following months of delay in issuing a final decision.
Following BlackRock's lead, Bitwise Asset Management is applying for a spot Bitcoin ETF, having submitted their application on June 16. Additionally, there are rumors circulating in the industry that Fidelity, another asset management firm, will soon make a 'seismic move' in the digital asset market.
UPDATE: @DigitalAssets and @Fidelity is about to make a seismic move in crypto via both $BTC and $ETH.
— Andrew (@AP_Abacus) June 18, 2023
Sources expect Fidelity to either make a bid for @Grayscale or quickly launch their own spot #bitcoin ETF. One or both are coming, soon.
**Blackrock and Fidelity will own…
Industry experts believe that Fidelity, like BlackRock, could seek to establish a cryptocurrency ETF, aiming to capture some market share from Coinbase and Binance, both of which are embroiled in legal disputes with the SEC.
Bitcoin Gains from Wall Street Giants' Support
As a result of the wave of applications for cryptocurrency ETFs, the price of Bitcoin has been on a dynamic rise. On Wednesday, Bitcoin is testing at around $29,000, which is its strongest price in over a month. During Tuesday's session, the value of the oldest cryptocurrency increased 5.5%, marking its most robust single-day gain in two weeks. Previously, such a dynamic move was seen in March 2023.
Wall Street giants have just submitted applications to the SEC to establish new financial instruments, and no one promises that the situation will differ from two years ago. However, the current licensing pressure on the industry in the US might prompt regulators to view regulated providers of financial instruments in a more favorable light.