Will the 12 Bitcoin ETF Submitted to the SEC in 2021 be Approve？

Approval of a bitcoin exchange-traded fund in the US could pull investors out of a popular trade and erode a key support of the cryptocurrency's lofty price, JPMorgan strategists said.

BTC ETFs have begun to appear all over the world. Countries and regions such as Canada, Brazil, and Dubai have launched officially approved BTC ETFs, but so far, the US Securities and Exchange Commission (SEC) does not seem to have much willingness to approve BTC ETF proposals. Since the first BTC ETF application in the United States was submitted in 2013, all applications have been rejected, but even so, in 2021, many institutional investors still submitted BTC ETF applications to the SEC.

What is Bitcoin ETF?

ETF is a publicly traded investment tool that can track the value of related assets. For BTC ETF, the asset is BTC. Supporters of the BTC ETF believe that relatively complex wallets, exchanges, and private keys are a huge barrier for new users to enter the digital currency field, and the BTC ETF can allow investors to access relevant investment exposures while actually holding BTC.

Are there any BTC ETFS?

Here are the 12 BTC ETFs that submitted applications to the SEC in 2021:

First Trust/SkyBridge Bitcoin ETF

In March 2021, the hedge fund SkyBridge Capital submitted an application for the BTC ETF with SEC. The company is run by former White House communications director Anthony Scaramucci and also owns a Bitcoin fund-but the fund is only open to accredited investors, The minimum investment is US$50,000, and the fund size has grown to more than US$370 million in just a few weeks after its launch in January 2021.

Anthony Scaramucci is very optimistic about the BTC ETF. He believes that regulatory approval can be obtained by the end of 2021.

WisdomTree Bitcoin ETF

WisdomTree, an asset management company headquartered in New York, actually already has experience in operating BTC ETFs because the company launched a BTC ETF in 2019 and on the Switzerland's SIX stock exchange. In March 2021, the company submitted an S-1 application document with SEC, aiming to list the shares of its WisdomTree Bitcoin Trust on the Cboe bZx Exchange.

However, the SEC has repeatedly delayed the application and also invited the public to provide feedback on the proposal, including providing "written data, opinions and arguments on whether the proposal should be approved or disapproved."

Valkyrie Investments Bitcoin ETF

Valkyrie Investments is a relatively new "BTC ETF" competitor. It submitted an application for a BTC ETF in January 2021. The ETF will be traded on New York Stock Exchange (NYSE) Arca and will refer to the Bitcoin reference price of the Chicago Mercantile Exchange.

However, in the submitted application documents, Valkyrie Investments “defaulted” to the volatility of cryptocurrencies-and this is precisely one of the SEC’s main concerns. They wrote in their risk assessment: “These potential consequences of such a Bitcoin Exchange’s failure could adversely affect the value of the Shares.”

NYDIG/Stone Ridge Bitcoin ETF

NYDIG and Stone Ridge are the second institutions to submit a BTC ETF application with SEC in 2021. The application was filed on February 16, which coincided with the BTC price rising — -For the first time in history, it has reached 50,000 US dollars. Although SEC announced that it has postponed many other applications, it has not yet announced the review of NYDIG BTC ETF applications.

Wise Origin Bitcoin Trust Bitcoin ETF

Wise Origin Bitcoin Trust also filed an application for the BTC ETF with SEC in March 2021. According to the Wise Origin Bitcoin Trust application documents, Fidelity Service Company Inc will act as the fund manager, while Fidelity Digital Assets will act as the custodian.

In May 2021, Cboe Global Markets also submitted a proposal about listing Fidelity BTC ETF. CBOE believes that with the increase in investor participation and the significant increase in institutional adoption of cryptocurrencies, the SEC’s concerns about market manipulation have been alleviated.

One River Bitcoin ETF

One River Asset Management has filed an application with the SEC for a carbon-neutral bitcoin ETF in May 2021. Its advisors include Jay Clayton, the former chairman of the Security and Exchange Commission when the agency refused to approve all applications received regarding the issuance of bitcoin ETFs.

As Bitcoin’s energy consumption and carbon footprint will be subject to more and more scrutiny, One River intends to offset the carbon footprint associated with bitcoin by purchasing and retiring carbon credits, which are required to account for the estimated carbon emissions associated with the mining of BTC held by the Trust in the index calculation.

Invescoalaxy Bitcoin ETF

On September 22, 2021, Galaxy Digital and Invesco jointly submitted the BTC ETF application documents. The BTC ETF was named Invesco Galaxy Bitcoin ETF. Galaxy Bitcoin ETF is an exchange-traded fund that issues common shares of beneficial interest that trade on NYSE Arca, Inc. Invesco Capital Management LLC, a wholly-owned subsidiary of Invesco Ltd, is the initiator of this BTC ETF application, but it is not clear which company will be responsible for the fund's Bitcoin.

Global X Bitcoin ETF

Global X Digital Assets, a fund management company that manages $31 billion in assets, submitted an application with SEC in July 2021. The proposed Global X Bitcoin Trust will be listed on the Cboe BZX Exchange, with the fund manager being Bank of New York Mellon if the application be approved.

ARK 21Shares Bitcoin ETF

The ARK 21Shares Bitcoin ETF is an exchange-traded fund that issues common shares of beneficial interest that trade on the Cboe BZX Exchange, Inc. It was filed by Ark Invest in June 2021. Prior to this, ARK Invest had cooperated with the Swiss-based ETF provider 21Shares AG to launch the ARK 21Shares Bitcoin ETF. The fund will It will be traded on Cboe's BZX Exchange under the stock code ARKB if the application be approved.

Galaxy Digital Bitcoin ETF

In April 2021, Galaxy Digital, an cryptocurrency investment company, submitted a BTC ETF application, which is also the eighth Bitcoin exchange-traded fund application received by the SEC. Currently, Galaxy Digital manages more than US$400 million in assets and is also one of the largest Bitcoin institutional holders. It holds 16,400 BTC in its reserve (valued at more than US$680 million at current prices).

VanEck Bitcoin ETF

VanEck is one of the earliest BTC ETF applicants. As early as 2018, they cooperated with Solid to launch the VanEck SolidX Bitcoin Trust. Although the application was withdrawn in September 2019. VanEck then tried to launch the BTC ETF again and submitted an application with SEC in December 2020. It is worth noting that VanEck submitted this application only a few days after the chairman of the SEC Jay Clayton resigned.

Kryptoin Bitcoin ETF Trust

Kryptoin, headquartered in Delaware, tried to apply for a BTC ETF for the second time in April 2021 and plans to list on Cboe's BZX Exchange.Their first application was in October 2019.

According to Bloomberg News, 4 BTC ETFs are expected to be approved by SEC at the end of October. The SEC may decide at the end of October whether to approve, reject or delay the listing application of such ETFs. Which four will be approved in your opinion?