Bitcoin is up almost 20% since the filing of a spot ETF application by BlackRock BLK, the world's largest asset manager, though still down more than 55% from its 2021 peak.
Other ETF providers, including Bitwise, WisdomTree WT, Invesco IVZ, and Valkyrie, quickly joined the race with their filings for products similar to the iShares Bitcoin Trust. The first-mover advantage is huge in the ETF world, as we have seen in many cases.
We also learned last week that EDX Markets, a new cryptocurrency exchange backed by Citadel, Fidelity, and Charles Schwab SCHW, started operating recently. The launch of the exchange suggests institutional interest in crypto assets.
The SEC has so far rejected more than 30 spot bitcoin ETF applications on concerns regarding fraud and market manipulation. BlackRock's filing includes a proposed surveillance sharing agreement between Nasdaq and an unnamed bitcoin trading platform, likely Coinbase COIN.
The decision on the lawsuit filed by Grayscale against the regulator over the conversion of its massive Grayscale Bitcoin Trust GBTC into an ETF is expected this fall. GBTC operates more like a closed-end fund and can often trade at a premium or discount to its net asset value (NAV).
GBTC's discount to its NAV, which averaged around 40% this year, per the Wall Street Journal, has narrowed since BlackRock's filing to about 30%.
The ProShares Bitcoin Strategy ETF BITO, the world's largest and most actively traded cryptocurrency ETF, invests primarily in bitcoin futures contracts.
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Grayscale Bitcoin Trust (GBTC): ETF Research Reports
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