Several major asset managers, including BlackRock, WisdomTree, and Invesco, have applied to the U.S. Securities and Exchange Commission (SEC) for permission to launch a spot bitcoin exchange-traded fund (ETF). The SEC has been cautious about approving crypto-related investment products and has previously sued Coinbase and Binance for failing to register as securities trading venues. The applications have sparked speculation about the approval of the first crypto ETF, leading to a surge in bitcoin’s price.
Facts
- BlackRock, WisdomTree, and Invesco have applied to the SEC for permission to launch a spot bitcoin ETF.
- The SEC has yet to approve a spot ETF linked to a cryptocurrency and has sued Coinbase and Binance for failing to register as securities trading venues.
- The SEC believes digital assets should be treated the same way as conventional securities and subject to the same rules.
- Binance and Coinbase have advocated for a new regulatory framework specifically for digital or crypto assets.
- The license applications have raised speculation about the SEC potentially approving its first crypto ETF, leading to a rise in bitcoin’s price.
- Bitcoin’s price has surged beyond $30,000 for the first time since April and only the second time in 2023.
- WisdomTree’s previous ETF applications were rejected due to concerns about fraud and market manipulation, while BlackRock has entered into a “surveillance sharing agreement” with the Chicago Mercantile Exchange futures markets to address such concerns.
