Three companies that are vying to launch a spot Bitcoin exchange-traded fund (ETF) in the United States have gotten approval for their ETF to be traded on their exchanges.
These include Grayscale Investments, ARK, and VanEck. It should be noted that this is just some required paperwork.
The registration
A Bitcoin investment product aimed at accredited investors, the Grayscale Bitcoin Trust currently trades under the GBTC ticker on the QTCQX as a commodity investment product.
If Grayscale can get approval for converting its GBTC into a spot Bitcoin ETF, the fund would then be available for trading on the NYSE Arca.
To launch its ARK 21Shares Bitcoin ETF, Ark Invest has partnered with 21Shares, and it would trade on the Chicago Board Options Exchange (Cboe), if approved.
Likewise, VanEck has also gotten approval for its VanEck Bitcoin Trust to be traded on the Chicago Board Options Exchange (Cboe).
This is certainly a good sign that exchanges have approved for Bitcoin ETFs to trade. But, it should be noted that the Securities and Exchange Commission (SEC) is yet to approve the investment product.
Bitcoin ETF
There is a great deal of buzz in the industry regarding the approval of a spot Bitcoin ETF. If it does get approval, then investors in the US would be able to get exposure to Bitcoin.
The best part is that they would be able to do so without having to purchase and maintain custody of the cryptocurrency directly.
In the last decade, numerous financial institutions have submitted applications for a spot Bitcoin ETF, but the SEC has turned down all of them saying that it would be a big risk for investors.
Considering the stakes, the routine filings from ARK, Grayscale, and VanEck, are only adding more fuel to the hype.
This is because the deadline for the SEC to decide on the spot Bitcoin ETF applications is only a week away.
More details
The new registrations come after a similar filing made a day earlier by Fidelity for its Fidelity Wise Origin Bitcoin Trust.
It seems that the issuers are getting everything set up beforehand, so they are fully prepared when, and if, the SEC gives approval for their ETF fund.
No official statement has been issued by the SEC, or the potential Bitcoin ETF issuers, but there have been some rumblings.
Unnamed sources revealed that the securities regulator had had meetings with exchanges like the New York Stock Exchange (NYSE), CBOE, and Nasdaq.
This suggested that the SEC is prepping these exchanges for eventually listing Bitcoin ETFs. But, Matrixport, the digital asset manager, published a bearish report regarding the spot Bitcoin ETF.
It said that all pending applications would be turned down by the securities regulator and this resulted in a price decline in Bitcoin below the $42,000 mark.
The entire crypto market took a hit after Bitcoin’s decline, but the pioneer crypto managed to recover from the scare.