Two more U.S.-based asset managers are filing for spot Bitcoin exchange-traded funds (ETFs) following BlackRock‘s similar application last week. Bitcoin ETFs track the price of Bitcoin, providing investors exposure to the cryptocurrency without requiring direct ownership and storage of the asset. Instead, investors can buy shares of the ETF, representing ownership of a pool of Bitcoin held by the fund.
ETF provider WisdomTree has re-submitted an application requesting regulatory approval for the launch of the WisdomTree Bitcoin Trust. The trust, if approved, will be listed on the Cboe BZX Exchange under the ticker symbol “BTCW.” WisdomTree’s primary investment objective is to achieve exposure to Bitcoin’s price movements while considering the expenses and obligations associated with operating the ETF. However, the U.S. Securities and Exchange Commission (SEC) has already rejected two previous attempts by WisdomTree, in December 2021 and October 2022.
Invesco has also filed its own application for a spot Bitcoin ETF. The Atlanta-based firm argues that the lack of a spot Bitcoin ETF exposes U.S. investors to significant risks as they are forced to find alternative exposure through riskier means. Invesco states that the approval of a spot Bitcoin ETF would represent a significant win for the protection of U.S. investors seeking exposure to crypto assets. The company had previously teamed up with Mike Novogratz’s Galaxy Digital in September 2021 to file for the Invesco Galaxy Bitcoin ETF, and now seeks to reintroduce the instrument.
Despite the efforts of major investment companies, the SEC has repeatedly denied or postponed decisions on a physical Bitcoin ETF, citing concerns over the cryptocurrency’s volatility and risk of market manipulation. The new wave of applications, spurred by BlackRock’s filing, may be seen as a sign that asset management giants acknowledge the growing demand for regulated investment vehicles in the crypto space. However, whether this will change the regulator’s stance on the matter remains uncertain.
Following this news, the price of Bitcoin has continued its upward trajectory, approaching $29,000 after breaking $28,000 for the first time since May 8. The approval of a spot Bitcoin ETF could open the doors for a broader range of investors to gain exposure to cryptocurrency, potentially resulting in even more significant market shifts. However, skeptics argue that the volatility of the market and regulatory resistance will continue to hinder mainstream adoption of such investment vehicles. Only time will tell if these efforts will ultimately pay off for the companies and investors involved.
Source: Decrypt
