Grayscale, VanEck, and ARK, the three companies competing to offer spot Bitcoin ETFs in the United States, have been approved to trade the funds on their respective exchanges.
Grayscale Bitcoin Trust, a Bitcoin investment vehicle for accredited investors, currently trades as a commodity investment product on the OTCQX under the ticker GBTC. Now, Grayscale’s bid to convert its trust into a spot Bitcoin ETF has been approved for trading on NYSE Arca. And the VanEck Bitcoin Trust is traded on the Chicago Board Options Exchange (Cboe). Ark has partnered with fund manager 21Shares for the ARK 21Shares Bitcoin ETF, which will trade on Cboe once approved to be offered to investors.
To be clear, this is just some required paperwork. It is definitely a positive sign that an exchange has approved Bitcoin ETF trading. However, no issuer has received the all-important approval from the Securities and Exchange Commission.
There has been a buzz in the industry about the possibility of a Bitcoin ETF being approved. If so, U.S. investors would be able to gain exposure to Bitcoin without having to purchase and store the asset themselves.
Financial institutions have been applying to offer these products for over a decade, but the SEC has rejected all previous applications on the grounds that such products pose too much risk to investors.
Routine filings by Stake, ARK, VanEck and others are adding fuel to the hype, especially a week ahead of the SEC’s next deadline to make a decision on Bitcoin ETF applications.
The new registration follows Fidelity’s similar filing yesterday for the Fidelity Wise Origin Bitcoin Trust. The issuer appears to be getting everything in order so that it will be ready once news breaks that the BTC fund has been approved for trading.
There has been no official word yet from a potential Bitcoin ETF issuer or the SEC, but there have been rumors.
Just yesterday, an anonymous source said. fox business Securities regulators have met with exchanges including Nasdaq, CBOE, and the New York Stock Exchange, indicating that the SEC may prepare these exchanges for an eventual Bitcoin ETF listing. Early Wednesday, a Bitcoin flash crash sent the price below $42,000 after digital asset manager Matrixport issued a bearish report speculating that the SEC would reject all pending Bitcoin ETF applications. It took a nosedive.
As of this writing, Bitcoin has recovered significantly from the scare. According to CoinGecko, it is currently changing hands for $44,163.
Edited by Guillermo Jimenez.
