BlackRock’s Spot Bitcoin ETF Renews Optimism, Sparks Wave of New Filings

In a move that has revitalized the race for a spot Bitcoin exchange-traded fund (ETF), investment giants WisdomTree and Invesco have filed new applications following BlackRock’s recent filing for its own spot Bitcoin ETF. These developments are seen as a positive sign for the cryptocurrency market, fueling optimism among crypto investors. While the Securities and Exchange Commission (SEC) is yet to approve a spot Bitcoin ETF, the industry remains hopeful, especially given BlackRock’s strong track record of obtaining ETF approvals.

WisdomTree’s Third Attempt

WisdomTree, a New York-based asset management fund, has recently submitted a filing to the SEC requesting approval for its “WisdomTree Bitcoin Trust” to be listed on the Cboe BZX Exchange under the ticker symbol “BTCW.” This is the third time WisdomTree has applied for a spot Bitcoin ETF, with previous attempts being rejected in December 2021 and October 2022. The SEC cited concerns related to fraud and market manipulation as reasons for the rejections. Despite these setbacks, WisdomTree currently manages around $83 billion in assets.

Surveillance Sharing Agreement

One notable difference in BlackRock’s filing is its intention to establish a “surveillance sharing agreement” with the Chicago Mercantile Exchange (CME) futures markets. BlackRock’s proposal refers to the SEC’s approval of a Bitcoin futures fund by investment advisory firm Teucrium, which highlighted the CME’s ability to monitor and prevent price distortions caused by manipulative efforts. WisdomTree’s filing also mentions a willingness to enter into a similar surveillance agreement with a US-based spot trading platform for Bitcoin, reinforcing the importance of comprehensive surveillance measures.

Invesco Joins the Fray

Shortly after WisdomTree’s filing, global investment manager Invesco “reactivated” its own application for a spot Bitcoin ETF. Invesco has requested the SEC’s permission to list its “Invesco Galaxy Bitcoin ETF” on the Cboe BZX exchange. The filing emphasizes the advantages of a spot Bitcoin ETF that relies on professional custodians and other service providers, reducing the need for investors to depend on loosely regulated offshore vehicles. This enhanced level of security offers investors greater protection for their Bitcoin investments.

Renewed Optimism

The recent activities of WisdomTree and Invesco, following BlackRock’s lead, have injected new life into the race for a spot Bitcoin ETF. Bloomberg senior ETF analyst Eric Balchunas believes that BlackRock’s move has instilled a sense of optimism in the crypto community, given the company’s impressive track record of obtaining ETF approvals from the SEC. Balchunas notes that BlackRock has achieved a remarkable success rate of 575-1 in ETF approvals, further boosting expectations for the eventual approval of a spot Bitcoin ETF.

Fidelity Investments and Grayscale’s GBTC ETF

Rumors have begun circulating that Fidelity Investments, a multi-trillion-dollar fund manager with approximately $4.9 trillion in assets under management, might also seek to capitalize on the growing interest in spot Bitcoin ETFs. According to a tweet by Arch Public co-founder AP_Abacus, Fidelity Investments may file for its own spot Bitcoin ETF. Alternatively, the company could consider making an offer to acquire Grayscale’s GBTC ETF product. Cointelegraph reached out to Fidelity for confirmation but has not received an immediate response.

It is worth noting that as Fidelity Investments explores the possibility of entering the spot Bitcoin ETF market, investors interested in participating in the cryptocurrency space can leverage popular online trading platforms like Golden Profit or Immediate Bitcoin. These platforms offer a range of investment options, including cryptocurrencies, and provide users with access to various financial instruments, allowing them to diversify their portfolios and take advantage of potential market opportunities.

  • Luke Handt

    Luke Handt is a seasoned cryptocurrency investor and advisor with over 7 years of experience in the blockchain and digital asset space. His passion for crypto began while studying computer science and economics at Stanford University in the early 2010s.

    Since 2016, Luke has been an active cryptocurrency trader, strategically investing in major coins as well as up-and-coming altcoins. He is knowledgeable about advanced crypto trading strategies, market analysis, and the nuances of blockchain protocols.

    In addition to managing his own crypto portfolio, Luke shares his expertise with others as a crypto writer and analyst for leading finance publications. He enjoys educating retail traders about digital assets and is a sought-after voice at fintech conferences worldwide.

    When he's not glued to price charts or researching promising new projects, Luke enjoys surfing, travel, and fine wine. He currently resides in Newport Beach, California where he continues to follow crypto markets closely and connect with other industry leaders.