Investors have long been awaiting the approval of Bitcoin exchange-traded funds (ETFs) in the United States. While ETFs tracking Bitcoin have been approved in several countries such as Canada, Brazil, and Dubai, the U.S. Securities and Exchange Commission (SEC) has yet to approve any domestic Bitcoin ETFs. The first application for a physically-backed Bitcoin ETF in the U.S. was filed in 2013, and even after 10 years, investors and organizations proposing Bitcoin ETFs still hold hope for approval.

An ETF is an investment tool that is publicly traded and tracks the value of an underlying asset. In the case of Bitcoin ETFs, the underlying asset is Bitcoin itself. Investors can gain exposure to Bitcoin through Bitcoin ETFs without having to hold any digital currency themselves.

Although no ETFs have been approved in the U.S. at present, there are several promising Bitcoin ETFs that have the potential to be accepted by the SEC.

Below are the Bitcoin ETFs awaiting approval that have a chance of being accepted by the SEC:

BlackRock

BlackRock, the world’s largest asset management company, filed an application for a Bitcoin ETF on June 15. The application proposed BNY Mellon as the cash custodian and Coinbase as the digital asset manager and market data provider.

BlackRock’s filing has created a buzz in the cryptocurrency market. Many are hopeful that the SEC will approve BlackRock’s application due to its immense influence and wealth.

WisdomTree

WisdomTree, an asset management firm based in New York, has previous experience managing Bitcoin ETFs. In 2019, WisdomTree started trading ETFs on the Swiss Stock Exchange SIX. However, in March 2021, WisdomTree filed with a U.S.-based company proposing the listing of WisdomTree Bitcoin Trust shares on the Cboe bZx Exchange under the symbol BTCW in an S-1 document submitted to the SEC.

Invesco Galaxy ETF Bitcoin

On September 22, 2021, Galaxy Digital and Invesco jointly filed the Invesco Galaxy ETF Bitcoin. Instead of using derivative instruments like futures contracts, this organization’s ETF will be “physically backed” by BTC. While Invesco Capital Management LLC is the sponsor of the Bitcoin ETF, it is still uncertain which company will hold the Bitcoin.

Valkyrie Investments

Valkyrie, a relatively new asset management company, submitted its first proposal for a Bitcoin ETF in January 2021. The ETF will use the Bitcoin reference price set by the Chicago Mercantile Exchange and trade on NYSE Arca. The Bitcoin of the ETF will be held in cold storage by the digital asset manager Xapo.

In a somewhat predictable development, the SEC has delayed making a decision on Valkyrie’s Bitcoin ETF proposal, along with those of Kryptoin, WisdomTree, and Global X. However, the SEC ultimately rejected them during the Christmas season of 2021.

Ark Invest

In June 2021, Ark Invest filed an application for the Ark21Shares ETF. ARK 21Shares ETF Bitcoin is a product of the collaboration between ARK Invest and 21Shares AG, an ETF issuer in Switzerland. If approved, it will trade with the ticker symbol ARKB on the Cboe BZX Exchange.

Additionally, Ark Invest was the first company to disclose the expenses associated with its Bitcoin ETF. According to the filing, 21Shares will charge a fee of 0.95%, which will be used to cover operational costs.

Source: https://azcoinnews.com/bitcoin-etfs-awaiting-approval-which-ones-are-most-likely-to-be-accepted.html