As the news broke that major asset management firm BlackRock filed Bitcoin Spot ETF applications on June 15, 2023, there was a significant influx of 130.6k BTC on June 19, 2023. BlackRock is not alone in this pursuit, as other prominent asset management firms, including Wise Origin Bitcoin Trust, WisdomTree, Bitwise, VanEck, Invesco, Fidelity, and Valkyrie, have also filed similar applications for spot Bitcoin ETFs.
According to a recent tweet by the crypto magazine BITCOINLFG, Fundstrat Global Advisors believes that spot Bitcoin ETFs have the potential to surpass the current market capitalization of the precious metals ETF market, standing at around $230 billion. If this prediction holds, the value of Bitcoin ETFs would exceed the combined value of all precious metals ETFs, marking a significant milestone for the cryptocurrency realm.
Among the companies seeking approval for Bitcoin spot ETFs, BlackRock stands out with its impressive track record of success. With 576 ETF applications filed to date, BlackRock has achieved approval for a staggering 575 of them. This remarkable feat has not gone unnoticed by investors and whales, further fueling the anticipation surrounding the approval of BlackRock’s Bitcoin ETF application.
Bloomberg’s ETF expert, James Seyffart, revealed that BlackRock’s filing occurred in mid-June, and the Securities and Exchange Commission (SEC) is expected to respond on September 2nd. Market participants eagerly await the outcome, with many believing that BlackRock’s track record positions them favorably for approval.
The prospect of Bitcoin ETFs has also caught the attention of companies known for their involvement in metal ETFs. For instance, Invesco boasts an ETF focused on metal futures contracts with assets under management of approximately $169.3 million, while VanEck’s ETF centers on rare earth metals, commanding assets under management of around $614.4 million.
On June 26, 2023, Hong Kong launched a Bitcoin Exchange-Traded Fund (ETF) for its clients and became the first financial institution in the world to do so. If BlackRock’s ETF application gets approval, it is likely to overtake the previous $230 billion precious metals ETF market.