In a significant development for the cryptocurrency market, the Securities and Exchange Commision (SEC) has officially recognized spot Bitcoin exchange-traded fund (ETF) applications from prominent asset managers. BlackRock and Bitwise are among the companies whose applications have been acknowledged by the regulatory body. Additionally, the SEC is reviewing proposals for several other funds, including Wise Origin Bitcoin Trust, WisdomTree Bitcoin Trust, VanEck Bitcoin Trust, and Invesco Galaxy Bitcoin ETF. This article delves into the details of these applications and their implications for the industry.
San Francisco-based digital asset manager Bitwise initially filed for a spot Bitcoin ETF in October 2021 but later revised and resubmitted its application on June 28, 2023. The SEC notice regarding Bitwise's proposal stated, "Notice of filing of a proposed rule change to list and trade shares of the Bitwise Bitcoin ETP Trust under the New York Stock Exchange ARCA Rule 8.201-E, commodity-based trust shares." Similar announcements were made for the other proposed funds.
Bitwise's decision to refile its application was primarily influenced by the actions of BlackRock, the world's largest ETF issuer, which submitted its own spot Bitcoin ETF application on June 15, 2023. Matthew Hougan, Chief Investment Officer at Bitwise, emphasized the importance of BlackRock's entry into the market, stating, "You have to listen when BlackRock comes to the market because they're very careful and connected." Hougan acknowledged that BlackRock's move served as a significant signal for the industry.
Hougan noted that a successful spot Bitcoin ETF application requires a comprehensive analysis. While surveillance-sharing agreements, particularly regarding the CME market, are intriguing, Bitwise aims to adopt a more holistic approach. Hougan emphasized that their strategy will encompass various factors to ensure the strength and viability of their ETF proposal.
It is worth highlighting the collective Assets Under Management (AUM) of asset management giants involved in the spot Bitcoin ETF applications. BlackRock, Fidelity, Invesco, WisdomTree, VanEck, ArkInvest, Valkyrie, and Bitwise Asset Management, all of whom have recently resubmitted filings for a spot Bitcoin ETF, collectively manage an impressive $15.39 trillion in assets. This demonstrates the substantial interest and confidence in Bitcoin as an investment asset among leading financial institutions.
The SEC's acknowledgment of spot Bitcoin ETF applications marks a significant step forward for the cryptocurrency industry. With asset management powerhouses like BlackRock and Bitwise leading the way, the potential for a regulated Bitcoin ETF has gained substantial momentum. As the SEC continues to review these proposals, the industry eagerly awaits a decision that could pave the way for greater institutional participation and investment in the burgeoning world of cryptocurrencies.