Bitcoin ETF fever is heating up with SEC reform deadline.
Spot bitcoin exchange-traded fund (ETF) fever has peaked ahead of the Securities and Exchange Commission's regulatory deadline. But who are the big boys vying for commanding space in the nascent digital asset market?
December 29th is the deadline for filing amendments to identify Bitcoin ETFs as set by the SEC. A new wave of people and corporations will own BTC by 2024, but is that all good?
Bitcoin ETF heats up
On December 28, investor Fred Krueger posted a “meet the parents” look at the world's largest cryptocurrency's new buyers. “Thanks for your efforts, we'll take it from here,” he shouted.
BlackRock is the big daddy of them all and the largest asset manager in the world. Its total assets under management are $10 trillion, about half of the U.S. gross domestic product and one-third of the outstanding national debt.
For a 90-year-old institution with $4 trillion in AUM, loyalty is also a major player. Moreover, the platform serves 3,700 wealth management firms and seeks to secure its own BTC.
With more than $1.5 trillion in AUM, Franklin Templeton notes that it is the third “absolute giant” in the group. The company focuses on mutual funds, of which around 455 are offered.
The investor considers Van Eck and Wisdom Tree to be mid-tier, with $80 billion and $72 billion in AUM, respectively.
Read more: How to prepare for a Bitcoin ETF: A step-by-step approach
Crypto native ETF indicators include NYDIG, Galaxy, ARK, Bitwise and Valkyrie. These companies have very low AUM but are familiar with the crypto industry. Bitwise has launched an advertising campaign using actor Jonathan Goldsmith.
Smaller players include Hashdex and Pando, which are big in South America and Switzerland. Additionally, Hashdex released its latest Bitcoin announcement on December 28:
“Finally, don't forget that this is just the first wave,” the investor said. Vanguard, Charles Schwab and ProShares all suggested they might join.
“This is just the opening salvo. Traditional investors are about to get a real taste of what it's like to own a real bitcoin proxy.”
GreyScale is not mentioned as it is an already established Bitcoin fund provider. However, GBTC is trying to convert its product into a spot ETF at the same time as its competitors gain acceptance.
The latest ETF news
One of the companies that filed an update on the deadline was Arch Invest. Eric Balchunas, an ETF analyst, commented that the amendment focused on authorized participants, but it was not clear what had changed.
Fellow analyst James Seifert said more could follow today's finale.
Tom Dunleavy, a partner at MV Capital, said the Bitcoin ETF is “not a news selling phenomenon,” adding that “higher returns are coming.”
He cited several factors, including massive marketing campaigns, crypto in pension funds and unregulated risk, making the asset class accessible to institutions.
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