Blackrock’s Bitcoin ETF Sparks Wave of New Filings, Renewing Optimism

Blackrock’s introduction of a Bitcoin spot ETF has sparked a surge in cryptocurrency filings. Cryptocurrencies and their underlying technology are becoming more mainstream, which has renewed optimism among investors and market participants.

BlackRock’s Surveillance Agreement and WisdomTree’s Vision for a Bitcoin ETF

WisdomTree and Invesco have filed for spot Bitcoin exchange-traded funds (ETFs). Investment firms are starting to offer Bitcoin ETFs, which could make investing in Bitcoin easier for individuals and further promote Bitcoin’s acceptance in mainstream markets.

The latest investment firm to file for a spot in Bitcoin ETF is WisdomTree, a New York-based asset management fund. They’re trying to get approval to launch an exchange-traded fund that lets people invest in Bitcoin easily.

According to a filing to the SEC on June 21, WisdomTree wants to list its “WisdomTree Bitcoin Trust” on the Cboe BZX Exchange under the ticker “BTCW.”

The SEC rejected WisdomTree’s previous application for a spot Bitcoin ETF. Two rejections occurred in December 2021 and October 2022 due to fraud and market manipulation concerns. About $83 billion worth of assets are under WisdomTree’s management.

In BlackRock’s recent SEC filing, one of the main differences is that it wants to enter into a “surveillance sharing agreement” with CME.

BlackRock cites Teucrium’s SEC approval of a Bitcoin futures fund in its proposal. In the ruling, the CME says,

comprehensively surveils futures market conditions and price movements on a real time and ongoing basis in order to detect and prevent price distortions, including price distortions caused by manipulative efforts.

Furthermore, WisdomTree’s filing states that it is also willing to enter into such a surveillance agreement with “an operator of a US-based spot trading platform for Bitcoin.”

Invesco Swiftly Follows Suit: Bitcoin ETF Competition Heats Up After WisdomTree’s Filing

After WisdomTree submitted its application, Invesco quickly revived its own application for a similar product. Invesco’s quick response shows the market’s competitive nature for a Bitcoin ETF, as evidenced by WisdomTree’s filing.

According to 19b-4, Invesco has requested the SEC approve its Cboe BZX listing of its “Invesco Galaxy Bitcoin ETF.” Invesco uses this document to inform the financial regulator about its proposed rule change and ask permission to list Bitcoin ETFs.

Bitcoin ETFs that use spot use “professional custodians and other service providers,” so investors don’t have to rely on “loosely regulated offshore vehicles” thereby allowing them to “protect their principal investments in Bitcoin.”

In response to his tweet regarding WisdomTree’s filing, Bloomberg senior ETF analyst Eric Balchunas said,

BlackRock breathed new life into the race.

Balchunas also pointed out that crypto investors can look forward to BlackRock’s move, highlighting the firm’s impressive track record of getting ETFs approved with a “575-2” success rate. According to this statistic, BlackRock has a high chance of getting its proposed ETF approved.

In addition to WisdomTree and Invesco’s recent activity, Fidelity Investments, a huge fund manager with trillions of dollars in assets, is also looking into spot Bitcoin ETFs. Fidelity Investments might consider offering its own Bitcoin ETF to meet the growing demand from investors.

The co-founder of Arch Public, AP_Abacus, tweeted on June 19 that Fidelity Investments was considering filing a spot Bitcoin ETF, with $4.9 trillion in assets. Fidelity Investments could also buy Grayscale’s GBTC ETF, according to Abacus.

GBTC is the biggest Bitcoin fund, with $17.2 billion in assets. A cryptocurrency ETF from Fidelity would be a big deal. Retail adoption of Bitcoin would also likely increase.