The Bitcoin Exchange Traded Fund (ETF).
Numerous companies have made attempts in the past to develop a Bitcoin ETF, but so far, none have been successfully established or approved by the authorities in the United States.
However, a potential breakthrough may be on the horizon as notable giants in the industry have been filing for their own, indicating that we could finally see one in the market.
In this article, we will explore the 8 organizations, who collectively manage more than $15 trillion in assets, behind the recent filings for a Bitcoin ETF.
1. ARK Invest & 21 Shares
In partnership with crypto market maker 21 shares, Cathie Wood’s ARK Invest refiled for a Bitcoin ETF on the 25th of April following multiple previous rejections from The United States’ Security and Exchange Commission (SEC).
ARK Invest is an American investment management firm based in Florida, that manages several actively managed exchange-traded funds, and reached a peak AUM of over $50bn in February 2021.
Interestingly, this filing is the only one that was submitted prior to BlackRock’s, which has prompted rumors that it is “first in line” should a Bitcoin ETF be approved at all.
2. BlackRock
The $9 trillion dollar asset manager’s entrance into cryptocurrency took the cryptocurrency world by storm, due to CEO Larry Fink having previously called Bitcoin an “index of money laundering.”
However, June their June 15th filing was quickly welcomed by the entire Web3 community, especially given that their win rate across 576 ETF filings is literally over 99%.
The investment management company, which operates 70 offices in 30 companies, has since seemingly changed its stance toward cryptocurrency, with CEO Larry Fink recently referring to Bitcoin as “digital gold”.
Their filing was a key catalyst in the subsequent en masse event, with multiple other filings from giants in the space following shortly after.
BlackRock also entered into a partnership with cryptocurrency exchange giant Coinbase in 2022.
3. Bitwise
Bitwise, a crypto index fund manager based in California, was the first organization to file for a Bitcoin ETF following BlackRock’s submission.
It currently offers close to 20 funds and other indexes, including a publicly traded Bitwise Bitcoin Strategy Optimum Roll ETF and a private NFT index fund.
It’s Bitwise Crypto Industry Innovators ETF also recently surpassed $100m in assets under management, in part thanks to strong market performance, and growing investor interest throughout 2023.
With their June 16th filing, the company is following up on a June 2021 submission, which was previously rejected by the SEC.
4. Invesco & Galaxy Digital
Invesco, an asset management company with over $1 trillion in assets under management, submitted their ETF application on the 20th of June in conjunction with Galaxy Digital, a technology-driven financial services and investment management firm.
In it’s filing, Invesco argued that the lack of a proper Bitcoin ETF in the United States could be detrimental to investors, and that they “may have little or no recourse should such theft, fraud or manipulation occur and could suffer significant losses.”
The duo had previously filed for a Bitcoin futures ETF in 2021, but chose to withdraw the submission.
5. WisdomTree
WisdomTree, Inc. is a global exchange-traded fund and exchange-traded product sponsor and asset manager with headquarters in New York, with their first ever ETF launched in 2006.
With $87 billion in assets under management, WisdomTree moved to submit their ETF filing on the 20th of June this year, following a previously rejected attempt by the SEC back in 2022.
6. Valkyrie
Valkyrie funds is an actively managed Exchange Traded Fund, with a focus on helping users gain exposure to the digital asset economy.
They are most well known for their Valkyrie Bitcoin Strategy ETF ($BTF) and their Valkyrie Bitcoin Miners ETF ($WGMI), which collectively manage over $60 million in funds.
The fund submitted their own application for a Bitcoin ETF on the 21st of June, proposing a ticker symbol $BRRR.
7. VanEck
VanEck Associates Corporation is a New York-based global investment manager, and one of the first U.S. asset managers to offer investors access to international markets, also recognizing early the transformative potential of gold investing, emerging markets and ETFs.
The company currently managed approximately $76.4 billion in assets across a range of investment vehicles.
“One problem with the SEC’s approach is that, without knowing the specific preconditions for approval, issuers have been almost continuously filing costly updates and re-filings, gambling that whoever is lucky enough to time their efforts closest to a regulatory change-of-heart might reap a multi-hundred-million-dollar revenue harvest,” VanEck’s head of digital assets research commented on Twitter.
Following their third SPOT bitcoin ETF rejection earlier this year, Van Eck submitted their application for a Bitcoin ETF on the 22nd of June,
8. Fidelity Investments
Asset management giant Fidelity Investments is the latest to join the Bitcoin ETF race, two weeks after BlackRock’s initial application.
With $4.5 trillion in assets under management, the company hopes to get its Wise Bitcoin Trust, which was rejected by the SEC in 2022, finally listed.
Is CoinBase The True Winner of The Bitcoin ETF Race?
A common theme amongst all previously rejected ETF applications was the SEC’s concern of the underlying Bitcoin market’s volatility and integrity.
Putting aside the irony of them approving a leveraged futures ETF while rejecting its SPOT counterpart, the companies attempting to get their trusts listed have quickly taken note of BlackRock’s partnership with Coinbase, and have all explicitly stated their intention to enter a surveillance-sharing agreement with the cryptocurrency exchange giant.
Surveillance-sharing agreements allow for the sharing of information about market trading activity, clearing activity, and customer identification, allowing for little possibility of market manipulation.
The SEC has since acknowledged all the submitted Bitcoin SPOT ETFs, meaning that they will now enter a period of deliberation, which historically has taken approximately 240 das.
Also Read: Here’s a Full List of Crypto Companies Licensed To Operate in Singapore (2023)
[Editor’s Note: This article does not represent financial advice. Please do your own research before investing.]
Featured Image Credit: Chain Debrief