Blackrock’s Bitcoin ETF Application Triggers Influx Of New Entrants Tokenhell

Following BlackRock’s filing for approval to issue a spot Bitcoin exchange-traded fund (ETF) on June 15, there has been a rise in new applicants seeking to offer the same product. Two investment platforms, WisdomTree and Invesco, are the latest players applying for a spot Bitcoin ETF approval from the US Securities and Exchange Commission (SEC).

Rising Interests In Spot Bitcoin ETF

In a filing submitted to the SEC on June 21, WisdomTree formally requested permission to document its “WisdomTree Bitcoin Trust,” and utilize the ticker symbol “BTCW.” It is worth noting that WisdomTree has made two previous attempts to secure approval for a Bitcoin ETF.

The United States securities regulator rejected the initial application in December 2021, followed by a second rejection in October 2022. The regulatory body cited fraud and market manipulation concerns for declining the platform’s application.

WisdomTree manages around $83 billion in assets at the time of writing. A notable difference in BlackRock’s recent proposal to the SEC is that it plans to establish a “surveillance sharing agreement” with the Chicago Mercantile Exchange (CME) futures markets.

BlackRock’s proposal references the SEC’s endorsement of a Bitcoin futures fund presented by Teucrium, an investment advisory platform. The approval highlighted the CME’s comprehensive surveillance of market situations and real-time monitoring of price fluctuations to identify and prevent manipulative activities leading to price distortions.

In its application, WisdomTree echoed the same reason tendered by BlackRock, stating that it is ready to sign a surveillance agreement with a US-based operator in the spot Bitcoin trading space. A few hours later, Invesco, another investment manager, reportedly reactivated its previous application to the SEC for a spot Bitcoin ETF approval.

In a 19b-4 document submitted to the SEC, Invesco formally requested approval to list the “Invesco Galaxy Bitcoin ETF” on the Cboe BZX exchange like BlackRock did. The filing also emphasized that a spot Bitcoin ETF, backed by professional custodians and other service providers, eliminates the need for investors to rely on poorly regulated offshore entities.

This development allows investors to safeguard their principal investments in Bitcoin more effectively.

No ETF Approval Yet

As the SEC continues to withhold approval for a spot Bitcoin ETF, Eric Balchunas, a senior ETF analyst at Bloomberg, shared his opinions regarding these recent developments. Replying to his tweet discussing the WisdomTree filing, Balchunas stated that BlackRock’s move had revived the ETF competition.

In addition, the Bloomberg analyst stated that cryptocurrency investors might have valid reasons for optimism regarding BlackRock’s initiative. He pointed out that the investment firm has an impressive track record of obtaining approval for ETFs from several regulators, with a success rate of “575-1.”

Alongside the recent developments involving Invesco and WisdomTree, there are reports that the trillion-dollar fund manager, Fidelity Investments, is also considering joining the growing institutional spot Bitcoin ETF bandwagon.

According to a tweet on June 19 by AP_Abacus, co-founder of Arch Public, Fidelity Investments, which oversees approximately $4.9 trillion in assets, might also seek the approval of the SEC for a spot Bitcoin ETF soon.

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