Spot Bitcoin ETF Applications and Their Current Status
Spot Bitcoin ETF applications and their progress compilation.
Bitcoin spot Exchange-Traded Fund (ETF) has become a hot topic in the financial and crypto industry. However, the US Securities and Exchange Commission (SEC) has not yet approved a spot Bitcoin ETF, which offers direct exposure to Bitcoin prices.
This article will discuss the list of applications for Bitcoin ETFs spots and their latest developments.
Grayscale Investments
Grayscale, which manages more than 600,000 BTC in a trust GBTC Bitcoin, begins filing for conversion of trust< /span> became a spot ETF in October 2021.
In June 2022 the conversion of GBTC to a spot Bitcoin ETF was rejected by the SEC, but in August 2023 this application was accepted and reviewed. Subsequently, November produced an updated filing, showing the change ticker GBTC to BTC.
Ark21 Shares
Since 2021, Ark Invest and 21Shares have been active in the Bitcoin ETF race. Their initial proposal was rejected in March 2022, and a second attempt was rejected in January 2023.
Re-filing in April 2023 puts them ahead of competitors like BlackRock. The SEC is expected to rule on their latest application on January 10, 2024.
CEO Cathie Wood is optimistic, suggesting that multiple companies could receive approval simultaneously, and the ETF will trade on the Cboe BZK Exchange under the ticker ARKB.
BlackRock
BlackRock, which manages funds worth US$9 trillion, applied for a Bitcoin spot ETF called iShares Bitcoin Trust on June 15, 2023.
This filing by BlackRock also made the crypto market cheer considering how big BlackRock is in the traditional financial industry. The impact of this application helped raise the price of Bitcoin to US$30,000 in June 2023.
In mid-July 2023, the SEC officially accepted BlackRock's Bitcoin spot ETF application, initiating a three-week comment period. Subsequently, on October 18, BlackRock submitted an amended prospectus, acknowledging the competitive landscape for Bitcoin ETF approval and providing detailed insight into the proposed product's pricing and reporting mechanisms.
In November, an SEC memo confirmed meetings between BlackRock and regulators, focusing on whether investment vehicles would adopt “in-kind” or “cash” redemption models. Deadline BlackRock Bitcoin ETF approval will occur on January 15, 2024.
Bitwise
Initially filing for a spot Bitcoin ETF in October 2019, Bitwise faced SEC rejection due to legal non-compliance. In 2021, they reapplied, choosing Bitcoin trading over futures contracts.
The SEC rejected the filing in June 2022. Recent amendments in September and November 2023 challenged the regulator's justification for rejecting the product, indicating a growing discussion and potential change in the regulatory landscape for Bitcoin ETFs. Deadline BlackRock Bitcoin ETF approval will occur on January 14, 2024.
VanEck
VanEck, an early Bitcoin ETF applicant, initially tried with the VanEck SolidX Bitcoin Trust in 2018, then withdrew in September 2019.
A second attempt, the VanEck Bitcoin Trust, was filed in December 2020. However, the SEC consistently delayed a decision and ultimately rejected the application in November 2021, followed by a second rejection in March 2023.
VanEck's third attempt in June 2023 sought approval for the VanEck Bitcoin Trust on the Cboe BZX exchange. In July, the SEC postponed the decision until January 15, 2024.
WisdomTree
WisdomTree, which manages assets worth around US$98 billion, began its Bitcoin ETF journey by launching on the Swiss SIX stock exchange in 2019.
In March 2021, WisdomTree filed an S-1 with the SEC for the WisdomTree Bitcoin Trust, which intends to list on the Cboe BZx Exchange as BTCW.
WisdomTree filed a new application in mid-2023, which is strategically aligned with BlackRock's filing. However, on October 11, the SEC rejected Cboe BZX Exchange's application for the WisdomTree Bitcoin Trust.
WisdomTree quickly revised its approach in November, changing the application and including Coinbase as the custodian for the proposed ETF. The deadline for approval or rejection of the WisdomTree spot Bitcoin ETF will be January 15, 2024.
Invesco Galaxy Digital
Galaxy Digital and Invesco collaborated on a Bitcoin ETF, Invesco Galaxy Bitcoin ETF, which was filed on September 22, 2021. Designed to be physically backed by Bitcoin, it aims to simplify investors' exposure to the cryptocurrency.
In June, Invesco independently filed for a Bitcoin ETF, aligning with BlackRock's timeline. The deadline for approval or rejection of the Invesco Galaxy Bitcoin ETF occurs on January 15, 2024.
Fidelity
In March 2021, Fidelity applied for the Wise Origin Bitcoin Trust, with custodian Fidelity Digital Assets. In January 2022 this application was rejected, but Fidelity resubmitted its application in June 2023. Addressing the SEC's concerns, Fidelity added Coinbase to the oversight sharing arrangement.
Then, Fidelity changed its Bitcoin ETF application on October 17, emphasizing risk considerations for the product. The deadline for Fidelity ETF approval or rejection will occur on January 15, 2024.
Global X
Global X Digital Assets, a fund with US$31 billion in assets under management, filed its application with the SEC in July 2021. The proposed Global
In September 2021, GlobalX Bitcoin Trust was one of four Bitcoin ETF applications whose deadlines were pushed back by the SEC. Unfortunately, Global Deadline Global X spot Bitcoin ETF occurs on April 19, 2024.
HashDex
In August 2023, Hashdex, Latin America's largest crypto asset management company, proposed converting its Bitcoin futures ETF into a spot ETF.
The filing in late August also resulted in a name change to the Hashdex Bitcoin ETF, aligning with its updated investment strategy. The SEC postponed its decision on Hashdex's conversion to a spot ETF until January 2024.
Franklin Templeton
In September 2023, asset management giant Franklin Templeton, with assets under management of approximately US$1.4 trillion. The spot Bitcoin ETF will partner with Coinbase as a custodial partner and share oversight, aligning with industry standards. The Franklin Templeton spot Bitcoin ETF approval deadline occurs on March 31, 2024.
Pando Asset
In November 2023, Swiss firm Pando Asset Management joined the competition for a spot Bitcoin ETF, submitting its proposal on November 29.
Pando, which already offers Bitcoin and Ethereum ETPs in Europe, aims to debut in the US crypto market. The 19b-4 filing puts Pando in the running, although the timing of its ETF launch remains uncertain compared to industry giants like BlackRock or Ark, which are awaiting SEC approval.
Although the US SEC has not yet approved a spot Bitcoin ETF, continued interest and efforts from various asset managers indicate great potential for this product in the future. The SEC's upcoming decision in January 2024 will be a watershed moment for the future of spot Bitcoin ETFs.
