List of Bitcoin Spot ETF Applications and Their Developments
The topic of Bitcoin spot Exchange-Traded Fund (ETF) has been a hot discussion in both the financial and crypto industries. Despite the U.S. Securities and Exchange Commission (SEC) not yet approving a Bitcoin spot ETF, which offers direct exposure to Bitcoin prices, various applications have been submitted for consideration.
This article will discuss the list of Bitcoin spot ETF applications and their recent developments.
Grayscale Investments
Grayscale, managing over 600,000 BTC in the GBTC Bitcoin trust, initiated the conversion of the trust into a spot ETF in October 2021.
In June 2022, the SEC rejected the conversion of GBTC into a Bitcoin spot ETF. However, in August 2023, the resubmitted application was accepted and under review. Subsequently, in November, an updated application was filed, indicating a change in the GBTC ticker to BTC.
Ark21 Shares
Since 2021, Ark Invest and 21Shares have been actively involved in the Bitcoin ETF race. Their initial proposal was rejected in March 2022, with a second attempt facing rejection in January 2023.
A resubmission in April 2023 positioned them ahead of competitors like BlackRock. The SEC is expected to decide on their latest application by January 10, 2024. CEO Cathie Wood remains optimistic, suggesting that multiple companies might receive approvals simultaneously, and the ETF would trade on the Cboe BZK Exchange with the ticker ARKB.
BlackRock
BlackRock, managing funds worth US$9 trillion, submitted an application for a Bitcoin spot ETF named iShares Bitcoin Trust on June 15, 2023.
BlackRock's submission generated excitement in the crypto market, given its significant presence in the traditional financial industry. This application had an impact, raising Bitcoin prices 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 insights into proposed product pricing and reporting mechanisms.
In November, an SEC memo confirmed a meeting between BlackRock and regulators, focusing on whether the investment vehicle would adopt a "in-kind redemption" or "cash" model. The deadline for approval of BlackRock's Bitcoin spot ETF is January 15, 2024.
Bitwise
Initially filing for a Bitcoin spot ETF in October 2019, Bitwise faced SEC rejection due to legal non-compliance. In 2021, they refiled, opting for Bitcoin trading instead of futures contracts.
The SEC rejected the application in June 2022. Recent amendments in September and November 2023 challenge the regulator's justification for rejecting the product, indicating evolving discussions and potential changes in the regulatory landscape for Bitcoin ETFs. The deadline for approval of Bitwise's Bitcoin spot ETF is January 14, 2024.
VanEck
VanEck, an early applicant for a Bitcoin ETF, initially attempted with the VanEck SolidX Bitcoin Trust in 2018, later withdrawing in September 2019.
Their second attempt, VanEck Bitcoin Trust, was filed in December 2020. However, the SEC consistently delayed decisions and ultimately rejected the application in November 2021, followed by a second rejection in March 2023.
VanEck's third effort in June 2023 sought approval for VanEck Bitcoin Trust on the Cboe BZX exchange. In July, the SEC postponed the decision until January 15, 2024.
WisdomTree
WisdomTree, managing assets valued around US$98 billion, launched its Bitcoin ETF on the SIX Swiss exchange in 2019.
In March 2021, WisdomTree filed an S-1 with the SEC for WisdomTree Bitcoin Trust, intending to list on the Cboe BZx Exchange as BTCW.
A new application in mid-2023, strategically aligned with BlackRock's filing, was met with a rejection from the SEC on October 11. WisdomTree quickly revised its approach in November, altering the application and including Coinbase as the custodian for the proposed ETF. The deadline for approval or rejection of WisdomTree's Bitcoin spot ETF is January 15, 2024.
Invesco Galaxy Digital
Galaxy Digital and Invesco collaborated on the Invesco Galaxy Bitcoin ETF, filed on September 22, 2021. Designed to be physically backed by Bitcoin, it aims to simplify investor exposure to crypto.
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 is January 15, 2024.
Fidelity
In March 2021, Fidelity filed an application for Wise Origin Bitcoin Trust, with Fidelity Digital Assets as the custodian. The application was rejected in January 2022, but Fidelity refiled in June 2023. Addressing SEC concerns, Fidelity added Coinbase to the oversight arrangement.
Later, on October 17, Fidelity modified its Bitcoin ETF application, emphasizing risk considerations for the product. The deadline for approval or rejection of Fidelity's Bitcoin ETF is January 15, 2024.
Global X
Global X Digital Assets, managing funds with assets totaling US$31 billion, submitted its application to the SEC in July 2021. The proposed Global X Bitcoin Trust would trade on the Cboe BZX exchange, with the Bank of New York Mellon designated as the trust administrator.
In September 2021, GlobalX Bitcoin Trust was one of four Bitcoin ETF applications whose deadlines were extended by the SEC. Unfortunately, the Global X spot ETF proposal, filed in August 2023 with Coinbase as the custodian, faced setbacks when the SEC extended its review period in November. The deadline for Global X's Bitcoin spot ETF is April 19, 2024.
HashDex
In August 2023, Hashdex, the largest crypto asset management company in Latin America, proposed converting its Bitcoin futures ETF into a spot ETF.
The submission in late August also led to a name change for the Hashdex Bitcoin ETF, aligning with the updated investment strategy. The SEC delayed its decision on Hashdex's conversion to a spot ETF until January 2024.
Franklin Templeton
In September 2023, asset management giant Franklin Templeton, with approximately US$1.4 trillion in managed assets, proposed a Bitcoin spot ETF. The ETF would partner with Coinbase as the custodian and share oversight responsibilities, aligning with industry standards. The deadline for approval of Franklin Templeton's Bitcoin spot ETF is March 31, 2024.
Pando Asset
In November 2023, Swiss company Pando Asset Management joined the competition for a Bitcoin spot ETF, submitting its proposal on November 29.
Pando, already offering Bitcoin and Ethereum ETPs in Europe, aims to make its debut in the U.S. crypto market. The 19b-4 submission places Pando in the running, although the launch timing of its ETF is still uncertain compared to industry giants like BlackRock or Ark, awaiting SEC approval.
*Disclaimer:
This content aims to enrich reader information. Always conduct independent research and use disposable income before investing. All buying, selling, and crypto asset investment activities are the reader's responsibility.
