The Securities and Exchange Commission (SEC) is facing a new wave of applications for spot Bitcoin ETFs from major investment firms. This trend has been on the rise since BlackRock’s filing paved the way for other players in the industry. Among them, WisdomTree and Invesco recently filed similar applications (Bitcoin ETF).
WisdomTree joins BlackRock in applying for Bitcoin ETF
After asset management juggernaut BlackRock burst onto the scene by filing for a spot Bitcoin ETF last week, other investment heavyweights also want to join the party.
Yesterday, June 20, WisdomTree, based in New York and with a portfolio of approximately $93 billion in assets under management, filed a asked for the launch of its famous WisdomTree Bitcoin Trust.
This time around, they hope to secure the coveted regulatory approval that would allow them to list this trust on the Chicago Board Options Exchange (CBOE) under the ticker symbol “BTCW”. . Yes, this is not the first time that WisdomTree has tried to bring a Bitcoin ETF to market.
Indeed, the previous requests were rejected by the Securities and Exchange Commission (SEC) in December 2021 and October 2022. However, this did not deter WisdomTree, which is coming back with new arguments.
In its filing, the company highlights its goal of providing investors with exposure to Bitcoin’s price movements while effectively managing the expenses and obligations associated with operating this ETF.
Invesco joins the race
Invesco, another large investment firm worth up to $1.49 billion, recently submitted its application for a spot Bitcoin ETF. In its filing, Invesco makes a compelling argument that the lack of a spot Bitcoin ETF exposes US investors to considerable risk, forcing them to look to riskier alternatives to gain exposure to digital assets.
” For example, many US investors who held their digital assets in accounts at FTX, Celsius Network LLC, BlockFi Inc., and Voyager Digital Holdings, Inc. became unsecured creditors in the insolvency of these entities.“, can we read in the file.
Approval of a Bitcoin cash ETF, according to Invesco, would be a major victory for protecting US investors seeking exposure to cryptocurrencies. The company originally worked with Mike Novogratz’s Galaxy Digital to file for an ETF in September 2021, but is now looking to reintroduce the instrument.
The SEC has regularly rejected or postponed decisions regarding Bitcoin ETFs, citing the volatility of the crypto and the risk of market manipulation. However, the current flurry of demands, triggered by BlackRock’s filing the previous week, may cause regulators to reconsider their stance.
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