BlackRock, a prominent asset management company, has recently submitted a filing to launch a Bitcoin exchange-traded fund (ETF), prompting other institutions like WisdomTree and Invesco to follow suit. These firms have submitted applications to the U.S. Securities and Exchange Commission (SEC), seeking the green light to introduce their Bitcoin ETFs.
The Race is On
Following BlackRock’s filing on June 15, the SEC has been inundated with Bitcoin ETF applications from various institutions, including WisdomTree, an exchange-traded fund manager, and Invesco, an investment management firm. Furthermore, Bitwise Asset Management, known for being the largest crypto index manager, filed for a Bitcoin ETF on the New York Stock Exchange the day after BlackRock’s submission.
ETF shares are traded on traditional exchanges, providing both retail and institutional investors a regulated means to gain exposure to an underlying asset. If approved, the ETFs from BlackRock, WisdomTree, and Invesco will be traded on the CBOE BZX Exchange. Notably, all previous applications for spot Bitcoin ETFs have been rejected by the SEC, including those from Fidelity, CBOE Global Markets, and NYDIG.
The cryptocurrency sector has recently caught the attention of several traditional financial institutions. Crypto proponents believe that the recent regulatory actions against the crypto industry by the SEC have paved the way for these institutions to capitalize on the future growth of the crypto market. EDX, a non-custodial cryptocurrency exchange backed by Citadel Securities, Fidelity, and Charles Schwab, was launched recently, highlighting the increasing convergence of legacy institutions on the crypto market.
Bitcoin’s Bright Outlook
This rise in institutional interest in Bitcoin comes as the crypto network prepares for its fourth halving in late April 2024, which will cut the rate of new Bitcoin supply issuance by half. Despite its large market cap, Bitcoin has been outperforming most other cryptocurrencies, showcasing a nearly 12% gain over the past week and maintaining its dominance at 50%. As the race to launch Bitcoin ETFs heats up, Bitcoin’s future appears more promising than ever.