As soon as January, a bitcoin exchange-traded fund (ETF) could be in the US – but while this seems highly likely, it remains to be seen what specific investment vehicles will be approved.
In fact, ahead of the January 10 deadline, anticipation was high, with more than a dozen applicants ranging from revolutionary Bitcoin companies to some of the most recognizable names in global finance.
The prize is the ability to provide investors with a regulated and accessible way to the world's leading cryptocurrency.
Unlike traditional investment methods, such as direct ownership or futures trading, Bitcoin ETFs simplify the process, allowing a wide range of investors, both institutional and individual, to participate in the cryptocurrency market.
This article discusses the intense competition between leading players in the financial industry as they seek approval for the first Bitcoin ETF in the United States.
Grayscale
tape: $GBTC
A subsidiary of the Digital Currency Group (DCG), a global organization that invests in and develops businesses focused on blockchain and cryptocurrencies, Grayscale offers investment products that provide exposure to various cryptocurrencies, including Bitcoin, Ethereum and others.
Since 2013, Grayscale Bitcoin Trust (GBTC) is a financial product offered by Grayscale Investments that has been one of the only ways for institutions to invest in Bitcoin.
GBTC is a publicly traded mutual fund that holds Bitcoin, and whose shares are traded on the over-the-counter (OTC) markets. The trust provides a way for investors to learn about Bitcoin without having to purchase and store the cryptocurrency directly.
Its owners include Ark Invest, a fellow ETF.
21 shares
Indicator: TBD
21Shares is a Swiss-based company that specializes in providing investment products focused on digital assets.
The company was previously known as Amun AG, and was rebranded as 21Shares in February 2021. Amun was founded in 2018 by a team of financial professionals, including Hani Rashwan and Ophelia Snyder, and is headquartered in Zug, Switzerland.
Since then, it has operated a series of exchange-traded products tracking various cryptocurrencies. These exchange-traded products are traded on traditional exchanges, providing investors with a convenient way to learn about digital assets.
21Shares offers a range of exchange-traded products, including Bitcoin (ABTC), Ethereum (AETH), Ripple (AXRP), and the 21Shares Crypto Basket Index ETP, providing exposure to a diversified portfolio of cryptocurrencies.
21Shares ETFs are listed on multiple traditional exchanges, making them accessible to a wide range of investors through regular brokerage accounts.
Ark Invest
tape: $ARKB
ARK Invest is an investment management firm known for its active and innovative approach to investing in disruptive technologies.
Founded by Cathie Wood in 2014, ARK Invest has since gained widespread recognition for its focus on disruptive innovation and thematic investing. It remains an early and prominent backer of both Bitcoin and Tesla, wildly successful contrarian bets.
ARK Invest was founded by Wood in 2014 and operates a series of exchange-traded funds (ETFs) consistent with its unique approach.
Some of the leading ETFs include ARK Innovation ETF (ARKK), ARK Genomic Revolution ETF (ARKG), and ARK Next Generation Internet ETF (ARKW).
ARK Invest actively manages its investment portfolios, making strategic investment decisions based on its research and analysis of disruptive trends.
Notably, its funds were among the first to offer exposure to GBTC when it was available in 2015 on OTC exchanges.
Wood, in particular, is on record as expecting Bitcoin to be worth more than $1 million within the next decade.
Black stone
tape: $ go
BlackRock is the world's largest investment management firm with trillions of dollars under management.
Founded in 1988 as a risk management and fixed income firm, it has since evolved into a global investment management giant with a comprehensive range of financial services for institutional investors, financial professionals and individual investors.
BlackRock is primarily known for its asset management business, offering a wide range of investment products, including mutual funds, exchange-traded funds (ETFs) and segregated institutional accounts. The company covers various asset classes, from equities and fixed income to alternatives and multi-asset strategies.
It is worth noting that BlackRock CEO Larry Fink has been dismissive of Bitcoin in the past, criticizing the emerging technology and its links to dark market-based criminal activity.
However, this made the news that it would launch a Bitcoin ETF in 2023 all the more poignant, as Fink explained that he believes the only decentralized cryptocurrency has stood the test of time.
Bitwise
tape: $bitb
Bitwise Asset Management is a cryptocurrency investment firm that specializes in cryptocurrency-based investment funds.
Founded in 2017 by Hunter Horsley and Hong Kim, Bitwise aims to provide institutional and retail investors with exposure to digital assets. Its flagship fund is the Bitwise 10 Crypto Index Fund, which tracks a diversified basket of the ten largest cryptocurrencies by market cap.
This fund provides investors with a way to gain exposure to a wide range of digital assets in a single investment.
Bitwise actively manages the Fund by regularly rebalancing its holdings to reflect changes in the market and ensuring alignment with the Fund's investment strategy.
Bitwise is known for its research efforts, providing insight into the cryptocurrency market. Furthermore, he was perhaps the only applicant for a Bitcoin ETF to launch a highly successful advertising campaign for the companyAppointment of former spokesperson for Dos Equis, known as “the most interesting man in the world.”
Van Eyck
Indicator: $XBTF
VanEck is a global investment management firm founded in 1955 by John C. Van Eck in New York City.
Initially, the company focused on managing gold investments, but over the years, it has expanded its offerings to include a variety of asset classes and investment strategies.
The company offers a variety of investment products, including mutual funds, ETFs, and other investment vehicles, but is best known for specializing in commodities investing.
VanEck first applied for a bitcoin exchange-traded fund (ETF) in 2017, and has since become one of the most active Wall Street firms in seeking approval for the investment product.
Tree of wisdom
Indicator: $BTCW
WisdomTree Investments is a global asset management firm offering a range of exchange-traded funds (ETFs), exchange-traded products (ETPs), and other investment solutions.
Founded in 2006 by Jonathan Steinberg, the company's goal is to create innovative investment products for investors looking for exposure to various asset classes including equities, fixed income, currencies and alternative strategies.
WisdomTree has shown interest in the cryptocurrency space, especially Bitcoin. The company has filed regulatory filings for exchange-traded products (ETPs) related to Bitcoin.
WisdomTree's involvement in Bitcoin ETFs is part of its broader exploration of digital assets and blockchain technology.
Invesco
Indicator: Petco
Invesco Limited is a global investment management firm offering a diversified range of financial products and services.
Founded in 1935, Invesco has grown into a global investment management company with a presence in North America, Europe, Asia Pacific and other regions.
Invesco provides a broad range of investment products and services, including mutual funds, exchange-traded funds (ETFs), separately managed accounts, and institutional strategies.
Since 2021, Invesco has been offering Invesco Physical Bitcoin, a physically backed exchange-traded product from Switzerland, and is currently vying to launch a Bitcoin ETF.
For its US Bitcoin ETF, it has notably teamed up with Galaxy Digital Holdings, a publicly traded financial services and investment management company focused on cryptocurrencies.
Founded by former hedge fund manager Mike Novogratz, Galaxy Digital aims to be a bridge between traditional finance and the emerging world of digital assets.
Research firm Galaxy has estimated the addressable market for ETFs in the billions.
devotion
Indicator: $FBTC
Fidelity Investments is a leading U.S.-based financial services firm and one of the largest privately owned and operated firms on Wall Street.
Founded in 1946, Fidelity is known for its focus on investment management, retirement planning, wealth management, life insurance, and other financial services.
However, the company is best known for its mutual fund offerings, offering a wide range of funds covering various asset classes, investment styles and strategies.
Fidelity has been interested in the digital assets space since 2013, when its R&D divisions began mining Bitcoin, with its CEO Abigail Johnson saying in 2017 that she “loves” Bitcoin.
Since then, the company has been active in the industry. Fidelity Digital Assets provides secure custody solutions for Bitcoin and other cryptocurrencies, meeting the needs of institutional clients looking to include digital assets in their investment portfolios.
Valkyrie
Indicator: $BTF
Valkyrie Investments is a financial services company specializing in investment management in the digital asset space.
Founded in 2020 and headquartered in the US, the company has created funds and instruments that provide exposure to digital assets, such as Bitcoin and other cryptocurrencies.
Valkyrie Investments has submitted proposals for a Bitcoin ETF, pending SEC approval.
Global X
tape: $bit
Global X ETFs is a well-known provider of exchange-traded funds (ETFs) with a focus on thematic investing.
Thematic ETFs are designed to track specific investment themes or trends, providing investors with targeted exposure to specific sectors or industries.
Global
Hashdex
Indicator: $diffy
Hashdex is a cryptocurrency-focused asset management company that specializes in creating investment products centered around digital assets.
The company was founded in 2018 and is headquartered in Brazil. It mainly focuses on managing cryptocurrency-related investment products. The company aims to provide investors with exposure to digital assets through structured and regulated investment vehicles.
Franklin Templeton
Indicator: nothing
Franklin Templeton is a global investment management firm with a long history and diverse portfolio of investment products and services. Founded in 1947, it has grown to become one of the world's leading investment management companies.
Franklin Templeton operates globally, with a presence in more than 165 countries. The company has a network of offices and investment professionals around the world.
The Wall Street giant offers a wide range of investment products, including mutual funds, closed-end funds, separately managed accounts, and more. The company covers various asset classes, such as equities, fixed income, alternatives, and multi-asset strategies.
A later entrant in the Bitcoin ETF race, Franklin Templeton is not particularly known for ETFs. As such, its inclusion in the race is widely seen as a sign of Wall Street's strong appetite for exposure to spot Bitcoin ETF products.
