The Race For A Spot Bitcoin ETF

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Fidelity Investments, along with Invesco, VanEck, 21Shares, and WisdomTree, has filed a fresh set of applications for a spot Bitcoin exchange-traded fund (ETF) after the initial filings were deemed insufficient by the U.S. Securities and Exchange Commission (SEC). These companies are among eight firms seeking to launch the first round of spot Bitcoin ETFs in the United States. In their new filings, they have included additional details, and all of them have indicated that Coinbase Global Inc. will provide market surveillance for their ETFs, which was not mentioned in the previous filings.

Crypto market surveillance is seen as a crucial aspect for gaining SEC approval for a spot Bitcoin ETF. Effective surveillance can help reduce fraud and market manipulation, which were major reasons behind the rejection of previous spot Bitcoin ETF applications.

Coinbase is also expected to provide various services for other proposed ETF issuers, including BlackRock, Valkyrie, and Bitwise. These services may include custody and other related functions. While 21Shares has mentioned Coinbase’s involvement in its filing, the other issuers have not confirmed Coinbase’s role.

The wave of spot Bitcoin ETF filings has generated excitement among digital asset enthusiasts, as it could potentially make crypto more accessible to everyday investors. The increased interest in ETFs has also contributed to a boost in token prices, with Bitcoin surpassing $30,000 in June and trading at its highest levels in about a year.

Coinbase’s involvement with the proposed ETFs could provide a revenue boost for the company at a time when the crypto-exchange industry is experiencing low trading volumes. Coinbase’s revenue in the previous year was less than half of what it achieved during the bullish market of 2021. Additionally, this news comes amid Coinbase’s legal battle with the SEC, which accused the company of operating an illegal exchange.

Following BlackRock’s filing for a spot Bitcoin ETF in mid-June, seven other firms have either filed or refiled for similar ETFs, reflecting market optimism that the SEC may change its stance on approving such funds. The SEC has already allowed ETFs tied to Bitcoin futures in 2021, signaling a partial shift in its approach.

Listed below are the five ETFs involved in Bitcoin with the most total assets at this time:

  1. ARKW (ARK Next Generation Internet ETF)
    • Total Assets ($MM): $1,399.57
  2. BITO (ProShares Bitcoin Strategy ETF)
    • Total Assets ($MM): $1,072.57
  3. BITQ (Bitwise Crypto Industry Innovators ETF)
    • Total Assets ($MM): $85.03
  4. XBTF (VanEck Bitcoin Strategy ETF)
    • Total Assets ($MM): $45.48
  5. BTF (Valkyrie Bitcoin Strategy ETF)
    • Total Assets ($MM): $29.54



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