The Race for the First Spot Bitcoin ETF in the US
The race to list the first spot-traded Bitcoin (BTC) exchange-traded fund (ETF) in the United States has attracted major financial institutions like BlackRock, Fidelity, and VanEck. The current filings are for spot Bitcoin ETFs, following Grayscale’s recent legal victory against the SEC. BlackRock’s interest prompted other institutions to refile for a spot Bitcoin ETF. Here are the key Bitcoin ETF applicants:
- BlackRock
- WisdomTree
- Valkyrie Investments
- ARK Invest
- VanEck
The SEC has delayed its decision on all seven applicants. In the past, the SEC rejected spot Bitcoin ETFs due to concerns about market demand, price volatility, fraud, and manipulation. However, with BlackRock’s entry, the chances of approval have increased. Futures ETFs, based on futures contracts, are easier to approve because the futures markets are already regulated. The SEC requires a “surveillance-sharing agreement” with a regulated Bitcoin-related market to prevent manipulation concerns. The SEC is mainly concerned about the robustness of trading venues.
The Future of Spot Bitcoin ETFs
While U.S. regulators seem more likely to support futures ETFs, the chances of approval for an Ether (ETH) futures-derived ETF are over 90%. Reports suggest that nearly a dozen institutions are lined up for approval.
Hot Take: The Approval of Spot Bitcoin ETFs is Becoming More Likely
The entrance of major financial institutions like BlackRock has increased the chances of approval for spot Bitcoin ETFs. While the SEC has delayed its decision, the wave of renewed applications and the recent legal victory by Grayscale have raised analysts’ expected approval chances to 75%. U.S. regulators are more likely to support futures ETFs, but the future of spot Bitcoin ETFs is still uncertain. The approval of an Ether futures-derived ETF is highly anticipated.
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