Race to List First Spot-Traded Bitcoin ETF in the US Attracts Major Financial Institutions

The race to list the first spot-traded Bitcoin (BTC) exchange-traded fund (ETF) in the United States has intensified, with major financial institutions like BlackRock, Fidelity, and VanEck joining the competition. While a Bitcoin-linked Futures ETF was approved by the U.S. Securities and Exchange Commission (SEC) in October 2021, the current focus is on spot Bitcoin ETFs. After Grayscale's recent legal victory against the SEC's review of its spot Bitcoin ETF proposal, there is growing belief that approval for these investment funds is more likely. The interest shown by BlackRock, the world's largest asset manager with over $8 trillion in assets under management, has spurred other institutions to refile their spot Bitcoin ETF applications.

Major Players in the Race:

BlackRock: On June 15, BlackRock filed for a spot Bitcoin ETF, surprising both the crypto and traditional finance worlds. Coinbase is selected as the crypto custodian and spot market data provider, while BNY Mellon will serve as the cash custodian. Despite the firm's CEO, Larry Fink, previously referring to BTC as an index for money laundering, the SEC accepted BlackRock's application for review on July 15.

WisdomTree: WisdomTree, a New York-based asset manager, initially filed for a spot Bitcoin ETF in the U.S. on December 8, 2021. However, the SEC rejected the application in 2022, citing concerns over investor protection. With BlackRock's entry into the spot Bitcoin ETF race, WisdomTree decided to refile its application with the SEC on July 19.

Valkyrie Investments: Asset management firm Valkyrie faced rejection from the SEC for its first spot Bitcoin ETF application in January 2021. However, amidst the renewed enthusiasm surrounding spot Bitcoin ETFs, Valkyrie refiled its application on June 21. The ETF will be based on the Chicago Mercantile Exchange's (CME) reference price for Bitcoin and will trade on NYSE Arca, with Xapo serving as the crypto custodian.

ARK Invest: ARK Invest submitted an application for its ARK 21Shares Bitcoin ETF in June 2021. Partnering with Swiss-based ETF provider }