Financial Giants Apply for Bitcoin ETF as Halving Event Nears


Financial Giants Apply for Bitcoin ETF as Halving Event Nears

As the highly anticipated Bitcoin halving event approaches, leading financial institutions have submitted applications for a spot Bitcoin exchange-traded fund (ETF), reminiscent of the period preceding the 2020-2021 bull run.

Institutional interest in the sector waned following the collapse of major crypto giants such as FTX during the extended crypto winter in 2022. Bitcoin and other cryptocurrencies experienced limited movement as several crypto exchanges faced regulatory scrutiny.

However, the recent news of prominent financial institutions, including BlackRock, Fidelity, and Valkyrie, applying to list a spot Bitcoin ETF has sparked a recovery in BTC's price, surpassing $30,000 and reigniting investment in the crypto market.

While numerous institutional giants have previously filed spot Bitcoin ETF applications with the United States Securities and Exchange Commission (SEC), all have either withdrawn their applications or faced outright rejections from the regulatory body.

In October 2021, the SEC approved the first Bitcoin futures ETF, the ProShares Bitcoin Strategy ETF, which debuted on the New York Stock Exchange on October 19, 2021.

However, the spot Bitcoin ETF application submitted by asset management giant BlackRock has significantly increased the likelihood of the SEC approving the first spot Bitcoin ETF. Bloomberg senior ETF analyst Eric Balchunas assigns a 50% chance of approval for BlackRock's spot Bitcoin ETF.

The recent wave of ETF filings commenced with BlackRock's application on June 16. Subsequently, WisdomTree, Invesco, and Valkyrie filed their applications in the following days and weeks.

On June 28, ARK Invest, which previously filed for a spot Bitcoin ETF in June 2021, amended its application to align it with BlackRock's proposal. The next day, asset manager Fidelity Investments also applied for a spot Bitcoin ETF. To date, a total of seven institutional giants have submitted applications for a spot Bitcoin ETF.

Industry experts suggest that the years 2023 to 2024 will be critical for the approval of a spot Bitcoin ETF. Robert Quartly-Janeiro, chief strategy officer of cryptocurrency exchange Bitrue, emphasized that the timing is opportune as "inflation is rampant and the money supply presents a mixed picture, interest rates are high, and businesses are generating substantial revenues. Therefore, cryptocurrencies must perform in an economic environment where rates and inflation are crucial considerations."

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