The U.S. Securities and Exchange Commission (SEC) has initiated the confirmation process for spot Bitcoin ETF applications, laying the groundwork for the United States to potentially receive the first such funds.
The SEC has begun to recognize these spot Bitcoin ETF applications. James Seyffart, ETF research analyst at Bloomberg Intelligence, first noticed the move and posted it on Twitter.
Confirmed applications include those from BlackRock, Fidelity, WisdomTree Funds, Invesco US and VanEck. The list is published on the Nasdaq Stock Market LLC (Nasdaq) rulemaking page.
Additionally, Galaxy Digital, ARK Investment, and BitWise applications have received SEC approval. However, this step in the application process, while integral, does not necessarily predict approval or rejection.
Despite all the activity, the U.S. Securities and Exchange Commission has yet to approve the creation of a spot Bitcoin ETF, raising concerns about the potential fate of these applications.
Still, many applicants remain optimistic that the inclusion of custody-sharing agreements aimed at combating market manipulation, a focus of the SEC, could lead to approval from the SEC, which has been reluctant to do so.
Against this backdrop, the SEC’s recent admission marks the official start of the decision-making process. All eyes will be on how the agency responds to these applications, especially since it could pave the way for approval of the first-ever spot Bitcoin ETF in the United States.
Bitcoin ETF: A Short Story
Bitcoin ETFs have had an important and interesting journey in the United States. The concept of a Bitcoin ETF first emerged in 2013, when the Winklevoss twins, founders of the Gemini cryptocurrency exchange, applied to the SEC to launch a Bitcoin ETF called the Winklevoss Bitcoin Trust. However, their initial proposal was rejected in 2017 and faced regulatory hurdles due to concerns about market manipulation, liquidity, and custody of the underlying assets.
The first major breakthrough came in 2021 when Canada approved the launch of the Purpose Bitcoin ETF, becoming the first country to have such an asset. The move reignited interest and raised expectations among U.S. investors and industry participants. It also forced the U.S. Securities and Exchange Commission to reconsider its stance on Bitcoin ETFs. Since then, several asset management companies, including VanEck, Fidelity, and Bitwise, have submitted Bitcoin ETF applications to the SEC in hopes of approval.
