Bitcoin ETF, looking back on past history with past article titles – could be announced as early as today | CoinDesk JAPAN

Expectations are high that the U.S. Securities and Exchange Commission (SEC) will soon approve a “Bitcoin ETF” (more specifically, a “Bitcoin Spot ETF”) that tracks the spot price of Bitcoin (BTC).

Many expect that the approval of Bitcoin ETFs will lead to an increase in the inflow of investment money into the crypto asset (virtual currency) market, putting upward pressure on prices. Of course, there are also those who see this as an event where people buy on rumors and sell on news.

Here, we will first start with some basic knowledge about Bitcoin ETFs, and then look back on the history of Bitcoin ETFs, focusing on past articles from CoinDesk JAPAN.

What is an ETF (Exchange Traded Fund)?

To understand what a Bitcoin ETF is, it is first necessary to know what an “ETF” is. ETF is an acronym for “Exchange Traded Funds,” which translates to “Exchange Traded Fund.” For example, there are the following definitions:

ETFs are investment trusts listed on financial instruments exchanges such as the Tokyo Stock Exchange. There are two types of ETFs: index-type ETFs that aim to achieve investment results that are linked to the movements of a specific index, such as the Nikkei Stock Average or Tokyo Stock Price Index (TOPIX), and active-type ETFs that do not specify an index to be linked.
Source: Nikko Asset Management

The difference from so-called “investment trusts” is whether or not they are listed on an exchange. Since ETFs are listed investment trusts, their major feature is that they can be bought and sold at any time during exchange hours, just like individual stocks.

Some ETFs are linked to price movements of gold and crude oil, and by purchasing these ETFs, you can invest indirectly without actually purchasing physical gold or crude oil. Become.

Advantages of Bitcoin ETF

So, what kind of benefits do Bitcoin ETFs bring to investors? Similar to gold and oil ETFs, if a Bitcoin ETF is approved, investors will be able to invest in Bitcoin indirectly by purchasing a Bitcoin ETF without having to buy Bitcoin directly. It becomes like this.

Normally, in order to purchase Bitcoin, you need to open an account at a crypto asset exchange. Although the process of opening an account has become easier, it still poses a major hurdle for those who are unfamiliar with crypto assets.

On the other hand, Bitcoin ETFs can be purchased by anyone who already has a securities account (and if the securities company starts handling Bitcoin ETFs).

Unfortunately, not many people in Japan have a securities account, but now that the country is promoting a shift from savings to investment, and with the launch of the new NISA, interest in stock investment is increasing. If Bitcoin ETFs are approved in the United States, the hurdles for investing in Bitcoin will become lower.

Impact of Bitcoin ETF

On the other hand, brokerage accounts are far more common in the United States than in Japan, and expectations for Bitcoin ETFs are far greater. Currently, traditional financial giants such as BlackRock and Fidelity have applied to offer Bitcoin ETFs, and if approved, even investors who are not familiar with crypto assets will be able to use Bitcoin ETFs. It will be easy to add Bitcoin to your portfolio through a major financial institution (which gives you peace of mind).

The stock market is more than 50 times larger than the crypto asset market. Bitcoin ETFs open the gateway to the stock market for Bitcoin, and if even a portion of the huge investment money in the stock market goes to Bitcoin, there will be upward pressure on the Bitcoin price. It is thought that it will become.

By the way, a Bitcoin ETF generally refers to an ETF that tracks the “spot price” of Bitcoin, and an ETF that tracks Bitcoin futures prices is called a “Bitcoin Futures ETF.” Futures ETFs often have higher operating costs than spot ETFs, which puts investors at a disadvantage.

History so far – Check out CoinDesk JAPAN’s past articles

Let’s take a look at the history of Bitcoin ETFs over the past few years, including past articles. Bitcoin ETFs have been a hot topic in the crypto industry since 2013, when the Winklevoss brothers, famous investors, filed an application with the SEC and was rejected.

Bitcoin ETFs were a hot topic before and after the launch of CoinDesk JAPAN in March 2019.

Two Bitcoin ETF applications are being reviewed by the US SEC. Will it be approved in spring 2019, or will deliberations be extended? (February 21, 2019)

There are currently multiple filing proposals on the table at the U.S. Securities and Exchange Commission (SEC) for Bitcoin ETFs (exchange traded funds that track a specific index and are listed on an exchange). After 45 days of deliberation, will it finally be approved for the first time?

US SEC postpones decision on Bitcoin ETF to mid-May (March 31, 2019)

Will it pave the way for virtual currency ETFs? VanEck and SolidX to offer products similar to Bitcoin ETFs to institutional investors: Report (September 3, 2019)

US Securities and Exchange Commission top official: Concerns about Bitcoin ETF approval – Focus on mid-October (September 10, 2019)

Although the market has taken steps to address the U.S. Securities and Exchange Commission’s (SEC) concerns regarding the approval of Bitcoin exchange-traded funds (ETFs), there is still “unfinished business”, the commissioner said. Stated.

Bitcoin ETF withdrawn for the second time ─ U.S. Securities and Exchange Commission applies to VanEck and SolidX (September 18, 2019)

Rejecting Bitcoin ETF application: U.S. Securities and Exchange Commission against Bitwise (October 11, 2019)

In the end, the SEC rejected each company’s Bitcoin ETF application. In 2020, there was little news regarding Bitcoin ETFs.

■Gensler becomes SEC chairman, sparking optimism

However, in January 2021, with the inauguration of the Biden administration, Gary Gensler, who has a deep understanding of crypto assets, was appointed as SEC Chairman, and expectations for the approval of a Bitcoin ETF increased. Now that I think about it, I expected too much.

What the crypto industry can expect from the SEC led by Gensler(January 18, 2021)

I believe that under Gensler, the SEC will finally allow retail Bitcoin ETFs (exchange traded funds). He expects to be convinced by the data regarding Bitcoin’s liquidity in the spot market, the integrity of the particular market where price discovery and price formation takes place.

In response to this optimism, industry movements toward Bitcoin ETFs have become active in the United States. The term “Bitcoin ETF first year” has also appeared. Below, we have selected nearly 10 articles, but these are not all. You can see how excited it was.

U.S. company plans to list Bitcoin ETF on the NY Stock Exchange—filing with SEC (January 25, 2021)

Bitcoin ETF expected to launch in US later this year: BitGo CEO
(January 26, 2021)

Bitcoin ETF may start operating at market capitalization of 2 trillion yen: ARK Investment CEO (January 27, 2021)

Bitcoin ETF: The first year has arrived, or is it too early? (February 20, 2021)

WisdomTree files Bitcoin ETF with SEC ─ ETF development is active in North America (March 12, 2021)

US SEC begins review of Bitcoin ETFs due to VanEck’s application
(March 18, 2021)

U.S. Fidelity will expand into Bitcoin ETFs (March 25, 2021)

Grayscale invests in an ETF company ─ Is the aim to acquire the ticker “BTC” (April 17, 2021)

Cathie Wood: Bitcoin ETF’s approval probability has increased – a rise to $500,000 is possible (May 20, 2021)

■Extension of examination and rejection

On February 18, 2021, North America’s first Bitcoin ETF was launched on Canada’s Toronto Stock Exchange before the US.Listeddid.

North America’s first Bitcoin ETF has assets of 44 billion yen in just 2 days (February 21, 2021)

A Bitcoin ETF has also been launched in Brazil.

South America’s first Bitcoin ETF launches in Brazil (June 24, 2021)

Meanwhile, in the United States, the SEC approved a “Bitcoin Futures ETF” rather than an ETF linked to the spot price of Bitcoin, casting a shadow over optimism about the approval of a Bitcoin ETF (Bitcoin Spot ETF). In fact, the SEC repeatedly extended its review.

U.S. SEC Chairman’s remarks are detrimental to Bitcoin spot ETFs (August 7, 2021)

“The Chairman’s comments make it clear that a pure spot Bitcoin ETF will not be created anytime soon, and that a futures product may be considered,” he said. said Steven McClurg of crypto asset management firm Valkyrie Investments.

US SEC to issue final response by November 14th – Bitcoin ETF review extended for third time (September 10, 2021)

SEC extends review of four Bitcoin ETFs (October 4, 2021)

Finally, the SEC decided to deny the application by U.S. asset management firm VanEck, which had passed its final review deadline. The optimism at the beginning of the year has been completely reversed.

SEC rejects VanEck’s Bitcoin ETF application (November 13, 2021)

The SEC stated that “(the Fund) has not met its responsibilities under the Exchange Act and the SEC’s implementing regulations… ” and “protect investors and the public interest,” the document said.

Will the SEC ever approve a Bitcoin spot ETF? (November 19, 2021)

Was anyone surprised that the SEC rejected another Bitcoin ETF application?

I wasn’t surprised at all. The SEC’s rejection of VanEck’s application on Tuesday merely repeated a long-standing tradition of blocking any ETFs that track the spot price of crypto assets.

After that, even into 2022, the SEC’s stance remained unchanged.

SEC continues to reject Bitcoin ETF applications (January 21, 2022)

SEC postpones decision on Bitcoin-related ETFs again – Ark21Shares and Teucrium filings (January 27, 2022)

SEC rejects Grayscale’s application – does not approve conversion to Bitcoin ETF (June 30, 2022)

During this year, Bitcoin prices continued to decline and were in a bear market.

[US Market]Bitcoin falls 59% in 6 months ─ worst half in history (July 1, 2022)

As a result, after the news broke that Van Eck had applied for a new Bitcoin ETF, there was almost no news related to ETFs.

VanEck applies for a new Bitcoin ETF (July 1, 2022)

■Sudden re-attention!The world’s largest asset management company applies

However, in June 2023, after a gap of about a year, Bitcoin ETFs suddenly started to attract attention. BlackRock, the world’s largest asset management company, has applied to the SEC for a Bitcoin ETF.

BlackRock, the world’s largest asset management company, applies for a Bitcoin ETF ─ Bitcoin rebounds to around $25,700 (June 16, 2023)

Things may be different this time. BlackRock is the world’s largest asset management company with assets under management (AUM) of over $10 trillion (approximately 1,400 trillion yen). Gary Gensler) has political power that is probably comparable to Chairman Gary Gensler.

There were also articles pointing out the differences with previous applications.

BlackRock’s Bitcoin ETF application, differences from previous years (June 19, 2023)

BlackRock’s Bitcoin ETF application is a big deal (June 20, 2023)

Bitcoin price also reacted. It is still fresh in my memory that the market continued to rise at an almost constant rate until the end of the year.

Bitcoin exceeds $26,300 – highest price in a week due to BlackRock ETF application (June 17, 2023)

“BlackRock Pivot” continues—Bitcoin price and trading volume rise (June 22, 2023)

Is the arc the best? Bitcoin ETF may be approved before BlackRock (June 29, 2023)

Fidelity reapplies for Bitcoin ETF (June 30, 2023)

Will 2023 be the year of Bitcoin ETFs? (July 10, 2023)

Incidentally, BlackRock CEO Larry Fink was known as a “Bitcoin skeptic.” However, since applying for the ETF, his statements have taken a 180-degree turn.

Bitcoin will “revolutionize the financial system” BlackRock CEO Larry Fink (July 6, 2023)

Additionally, Grayscale wins a lawsuit against the SEC over Bitcoin ETFs. Expectations were even higher.

Bitcoin rises to $28,000 at one point – Grayscale wins SEC lawsuit over Bitcoin ETF (August 30, 2023)

Bitcoin (BTC) is subject to Grayscale Investments’ application to the U.S. Securities and Exchange Commission (SEC) to convert the Grayscale Bitcoin Trust (GBTC) into an ETF. Prices rose more than 7% on the afternoon of the 29th, at one point exceeding $28,000, after a judge ordered a review of the dismissal.

The movement surrounding Bitcoin ETFs has further accelerated.

Bitcoin whale adds $1.5 billion worth of assets – optimistic with ETF expectations (September 4, 2023)

“Gold ETF” is a good precedent for predicting the future of Bitcoin spot ETF (September 24, 2023)

SEC begins considering ETF applications for Franklin and Hashdex; VanEk and ARK postponed (September 28, 2023)

Bitcoin prices sometimes fluctuated wildly due to false reports that the SEC had approved it, but optimism for approval remained unchanged.

Bitcoin rises to $30,000 and falls due to ETF approval misinformation – Misinformation spread on X (October 17, 2023)

SEC to approve multiple Bitcoin spot ETFs in coming months: JPMorgan (October 21, 2023)

Number of searches for Bitcoin spot ETF peaks (October 22, 2023)

“Crypto asset winter” is over (November 1, 2023)

Bitcoin (BTC) has risen 28% in the past month. Bitcoin ETFs (exchange traded funds) are coming soon. Crypto-asset (virtual currency) investment funds last week recorded their biggest inflows since mid-2022. Meme coins are also making a comeback. Now, the trial to punish Sam Bankman-Fried is almost over, and crypto assets are about to make a fresh start.

What is the huge opportunity that Bitcoin ETFs bring? (November 9, 2023)

■More concrete steps start

Will BlackRock’s Bitcoin ETF be supported by a major market maker? Stakeholders (November 1, 2023)

Several large market-making firms may provide liquidity to BlackRock’s Bitcoin ETF if regulators approve it. A person familiar with the matter said.

US SEC announces start of discussions with Grayscale regarding Bitcoin spot ETF (November 9, 2023)

BlackRock Bitcoin ETF seeks participation from Wall Street banks (December 13, 2023)

BlackRock, Nasdaq, and SEC meet for second time to change rules regarding Bitcoin spot ETF listing (December 21, 2023)

BlackRock and Valkyrie list JP Morgan and others as authorized participants (AP) of Bitcoin ETF (December 30, 2023)

Goldman Sachs may join BlackRock and Grayscale Bitcoin ETF: Source (January 4, 2024)

■Has Bitcoin been incorporated into TradFi (traditional finance)?

The fact that a Bitcoin ETF is getting closer to becoming a reality with the application of BlackRock, the world’s largest asset management company and representative of traditional finance (TradFi), is undoubtedly positive. However, there is also a growing view that the dream of decentralized finance envisioned by Bitcoin is being incorporated into traditional finance.

Simple reason why financial giants apply for Bitcoin ETFs (June 23, 2023)

Financial institutions are back. But why did asset managers BlackRock, with $10 trillion (1,400 trillion yen) in assets under management, and Invesco, with $1.5 trillion, decide that the time has come again for a Bitcoin ETF? Many people have complex and conspiratorial theories.

15 years after the Bitcoin White Paper, will Wall Street swallow Bitcoin? (November 3, 2023)

We are currently experiencing an ironic moment. Financial giants are increasingly leading a field that, in many eyes, is designed to put them out of business.

TradFi (traditional finance) becomes the main character of crypto assets – a large-scale shift begins (November 13, 2023)

Two years since Bitcoin hit a new high – will a new wave arrive or will it lose its soul? (November 14, 2023)

■There are cautious views on Bitcoin price and approval itself

Some people are starting to believe that the impact on Bitcoin prices has already been factored in. There are also negative opinions about the approval itself.

Bitcoin spot ETF approval already factored in: Coinbase (October 14, 2023)

Is physical Bitcoin ETF approval already factored in? Analysts’ opinions are divided (October 19, 2023)

What will happen to the Bitcoin price if the ETF is not approved? (November 5, 2023)

Further rejection of Bitcoin ETFs “likely”: BitGo CEO Bershe (November 20, 2023)

Bitcoin ETF approval could become a “sell on the news”: CryptoQuant (December 29, 2023)

Bitcoin and crypto assets move to the next phase

No one knows how a Bitcoin ETF will affect prices (and the SEC may not approve it). However, there is no doubt that Bitcoin ETFs will usher in a new phase for Bitcoin, and for crypto assets more broadly.

Bitcoin ETFs will spark massive Bitcoin trading — the market is ready (January 7, 2024)

Finally, it may be inappropriate to introduce the words of Michael Saylor, who is known as a Bitcoin “super bull”, as a summary of this article. But given the trajectory of Bitcoin’s price, it’s worth heeding his words.

Bitcoin spot ETFs are the biggest development on Wall Street in the past 30 years: Michael Saylor (December 20, 2023)

Michael Saylor, executive chairman of MicroStrategy, said on Bloomberg TV on the 19th that the market is underestimating the importance of the upcoming Bitcoin (BTC) spot ETF. He said it should not be evaluated.

｜Text/Editing: CoinDesk JAPAN Editorial Department
｜Cooperation: Reuters Board Co., Ltd.
｜Image: Shutterstock