Bitcoin spot ETF, 3 new companies apply again in response to SEC concerns

BTC Spot ETF Applications Accelerate

In the United States, applications for spot ETFs (exchange-traded funds) of crypto assets (virtual currency) Bitcoin continue.

Until now, the SEC has not approved physical ETFs. The recent filing draws attention to the fact that it introduces a structure that addresses the “lack of oversight sharing agreements with regulated markets related to physical bitcoins” that the SEC is concerned about.

connection: What is an exchange traded trust “Bitcoin ETF”? | Why the application of BlackRock attracts attention

Since BlackRock, Valkyrie, Invesco and WisdomTree have also applied for physical Bitcoin ETFs. All companies have been SEC-approved in the past and will try again.

The latest application date is Valkyrie, the name of the financial product is “Valkyrie Bitcoin Fund”. The application was filed on the 21st, with the aim of listing on the Nasdaq with reference to the price of Bitcoin indicated by the index “CME CF Bitcoin Reference Rate”.

The product name of Invesco applied for on the 20th is “Invesco Galaxy Bitcoin ETF”. It plans to list on the “Cboe BZX Exchange” by referring to the “Bloomberg Galaxy Bitcoin Index”.

Also, WisdomTree applied on the 20th, and the name of the product is “WisdomTree Bitcoin Trust”. With reference to the index “CF Bitcoin US Settlement Price” and scheduled to be listed on the Cboe BZX Exchange, all three companies have introduced structures that address the SEC’s concerns.

The SEC has not previously approved physical Bitcoin ETFs, but the filing by the largest, BlackRock, and the introduction of structures to mitigate SEC concerns have raised market expectations. ing.

Advantages of cash ETFs

Despite the fact that Bitcoin ETFs that track futures have already been approved, the reason why spot-type ETFs are attracting attention is because they directly hold Bitcoins and determine the value of investment products based on their amounts.

If an ETF directly backed by Bitcoin is approved, market liquidity will increase due to the price arbitrage required for operation, and the physical supply of Bitcoin will decrease due to custody, increasing scarcity. there is a possibility.

And many investors are also hopeful that a large influx of investment capital is expected, similar to when a gold ETF was launched, which will boost the Bitcoin price. .

The price of bitcoin, which was in the $24,000 range on the 15th when BlackRock filed, has exceeded $30,000 at the time of writing this article, thanks to the acceleration of ETF applications (see Coinbase).

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