Wall Street is stepping up its crypto game. The US ETF industry is worth $5.9 trillion. And issuers across this industry are now in a race to win approval for the first Bitcoin fund.
Canada is currently leading the charge as far as North America is concerned.
But as Bloomberg notes, at least four firms now have live applications for exchange-traded fund tracking the latest cryptocurrency in the United States. And interestingly, not only have do they have to win approval, they also have a big hurdle standing before them.
In the form of SEC, a regulator whose stance on crypto remains unknown.
WisdomTree Investments joined the ranks of VanEck Associates, NYDIG Asset Management, and Valkyrie Digital Assets last week. These are the four firms that have filed for Bitcoin ETFs in the past three months.
Their odds of approval are a mystery, seeing as the US Securities and Exchange Commission has rejected all previous filings.
But things have changed in recent past. Since the rejections, two Bitcoin ETFs have launched in Canada, and institutional acceptance of cryptocurrencies has snowballed. What’s more, the leadership at the regulator has changed.
Gary Gensler, the nominee to the be the next SEC chairman, is known for having a more open stance towards cryptocurrencies. Hope is high, for this reason, and applications are piling up even before he is in place.
Despite the shifting landscape, though, the early applications still look ambitious.
But regardless of the stakes involved, there is potential bonanza on offer for the first to get an ETF over the line. The Purpose Bitcoin ETF in Canada, the first of its kind on North America, saw more than $165 million worth of shares change hands upon launch.
Evolve Fund Group, on the other hand, reported just $14.6 million worth of shares traded in its debut one day later.
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