![]() ![]() Coinbase is serving as the Bitcoin custodian for the majority of issuers, while firms such as JPMorgan, Jane Street, and Virtu are set as authorized participants-partners who sit in between issuers and investors to handle the creation and redemption of ETF shares. The frenzy also attracted other players that aren’t issuing Bitcoin ETFs but assuming related roles. While BlackRock remains the highest-profile issuer, thanks to its existing fleet of ETF products, other approved firms include Fidelity, Franklin Templeton, and Cathie Wood’s ARK.Ĭrypto-native firms, hoping to entice investors by touting their experience in the digital assets space, include Grayscale, Hashdex, and Valkyrie. ![]() Finish lineĪnticipating that the SEC would relent-even under the crypto-skeptical chair, Gary Gensler-the Bitcoin ETF race attracted major players from across the worlds of traditional finance and crypto. After a flurry of meetings between prospective issuers and the SEC in December, the agency pushed a cash model for creation and redemption of shares, meaning the onus for buying and selling Bitcoin would be on the issuers. The past few months have been filled with speculation over when approval might come, as well as how the mechanics around such novel products would work. After Grayscale won its case in August, the timeline was set in motion. In anticipation of a victory, BlackRock filed for a spot Bitcoin ETF in June 2023-a signal to many that approval was inevitable. That dynamic changed when Grayscale, a prominent crypto asset manager that runs the largest Bitcoin trust, sued the agency in 2022 for allowing futures-based ETFs but not spot vehicles. Even after the agency in 2021 approved a Bitcoin futures ETF, which trades derivatives on Commodity Futures Trading Commission–regulated exchanges, the SEC continued to deny applications for spot ETFs. ![]() Under successive administrations, the SEC rejected applications for spot Bitcoin ETFs, citing the immaturity of the market and the potential for manipulation. A spot Bitcoin ETF, which tracks the current price of the popular cryptocurrency, had long been a pipe dream for the crypto industry, with the hope it could open new flows of investment from wealth managers and everyday traders who otherwise would not buy digital assets on exchanges like Coinbase. ![]()
0 Comments
Leave a Reply. |
Details
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |