The SEC has received a new application for a bitcoin ETF. Wall Street is up to something
Date: 2023-06-21 Author: Karina Ziganova Categories: BLOCKCHAIN
Investment company WisdomTree has applied for a spot bitcoin ETF. Does this mean that Wall Street is trying to get its hands on cryptocurrencies?
[Update] Investment management company Invesco has also reapplied for a Bitcoin ETF. Invesco was one of the first to try to get approval to launch a cryptocurrency ETF, applying in Q3 2021. It has since abandoned those plans, but has now reapplied for a new spot BTC ETF, along with BlackRock, WisdomTree, and Fidelity.
ETF fever is back
WisdomTree, a well-known provider of services in the segment of exchange-traded funds (ETFs) and exchange-traded products, is again trying to get permission to launch a spot bitcoin ETF in the United States. On June 20, the company applied for the WisdomTree Bitcoin Trust, which will be listed on the Cboe BZX exchange under the ticker BTCW.
The investment firm has been trying to break into this market for a long time, however, in 2021, the Securities and Exchange Commission rejected previous applications for spot cryptocurrency ETFs from a number of asset managers, including WisdomTree.
The investment firm has been trying to break into this market for a long time, however, in 2021, the Securities and Exchange Commission rejected previous applications for spot cryptocurrency ETFs from a number of asset managers, including WisdomTree.
However, last week, the world's largest asset manager, BlackRock, applied to create a spot bitcoin ETF. According to many market participants, this could turn the tide of the game.
According to analysts Eric Balchunas and James Seyffart, BlackRock's filing "restored hope of success due to the size, status and reputation of the company."
The SEC, which has now staged a crusade against crypto exchanges, previously cited risks for investors as the reason for refusal. However, at the same time, the regulator approved futures funds, which are not backed directly by the asset, but by futures contracts on the CME.
Wall Street is up to something
However, many industry analysts remain skeptical. Some of them have already suggested that the latest developments may prove to be a way for financial institutions and the government to control cryptocurrencies.
Analysts, not without reason, are surprised by the fact that such large corporate applications are filed against the backdrop of an ever-expanding war with the crypto industry in the United States.
Industry analyst Preston Pysh believes that BlackRock, Fidelity, Citadel, Schwab, and now Deutsche Bank have not accidentally begun to show an active interest in bitcoin funds and other types of activity in the crypto space.
"How can you not think that the whole of last year was a gigantic internal work, coordinated between parasites from Wall Street and state regulators so that they can catch up..."
ETF Store President Nate Jeraci presented a list of applications filed since last Thursday. This list included iShares, Bitwise, WisdomTree, and the fourth-largest ETF issuer, Invesco
"What has changed lately? The SEC has embarked on the warpath against cryptocurrencies. Something is going on."
