Crypto News

A List of Every Wall Street Giant Seeking to Launch a Bitcoin ETF

Published

9 months ago

December 28, 2023

As soon as January, a Bitcoin spot ETF could be live in the U.S. – but while that much appears likely, it remains to be seen which specific investment vehicles will be approved.

Indeed, in advance of the January 10 deadline, anticipation is high, with over 12 applicants ranging from disruptive Bitcoin companies to some of the most well-known names in global finance.

The prize is the potential to provide investors with a regulated and accessible vehicle to the world’s leading cryptocurrency.

Unlike traditional investment routes, such as direct ownership or futures trading, a Bitcoin ETF simplifies the process, allowing a broader range of investors, both institutional and retail, to participate in the crypto market.

This article delves into the intense competition among prominent players in the financial industry as they seek approval for the first Bitcoin spot ETF in the U.S.

Grayscale

Logo of Bitcoin ETF applicant Grayscale.

TICKER: $GBTC

A subsidiary of Digital Currency Group (DCG), a global enterprise that invests in and develops businesses focused on blockchains and cryptocurrencies, Grayscale offers investment products that provide exposure to various cryptocurrencies, including Bitcoin, Ethereum, and others.

Since 2013, the Grayscale Bitcoin Trust (GBTC) is a financial product offered by Grayscale Investments that has been one of the only ways for institutions to invest in Bitcoin.

GBTC is a publicly traded trust that holds Bitcoin, and its shares are traded on over-the-counter (OTC) markets. The trust provides a way for investors to gain exposure to Bitcoin without having to buy and store the cryptocurrency directly.

Among its owners are Ark Invest, a fellow ETF applicant.

21Shares

Logo of Bitcoin ETF applicant 21 Shares.

TICKER: TBD

21Shares is a Swiss-based company that specializes in providing investment products focused on digital assets.

Formerly known as Amun AG, the company rebranded to 21Shares in February 2021. Amun was founded in 2018 by a team of financial professionals, including Hany Rashwan and Ophelia Snyder, and it is headquartered in Zug, Switzerland.

Since then it has operated a series of exchange-traded products tracking various cryptocurrencies. These ETPs are traded on traditional stock exchanges, providing investors with a convenient way to gain exposure to digital assets.

21Shares offers a range of ETPs, including Bitcoin (ABTC), Ethereum (AETH), Ripple (AXRP), and the 21Shares Crypto Basket Index ETP, offering exposure to a diversified portfolio of cryptos.

21Shares’ ETPs are listed on various traditional stock exchanges, making them accessible to a broader range of investors through regular brokerage accounts.

Ark Invest

The logo of Bitcoin ETF applicant Ark Invest.

TICKER: $ARKB

ARK Invest is an investment management firm known for its active and innovative approach to investing in disruptive technologies.

Founded by Cathie Wood in 2014, ARK Invest has since gained widespread recognition for its focus on disruptive innovation and thematic investing. It remains a notable early backer of both Bitcoin and Tesla, wildly successful contrarian bets.

ARK Invest was founded by Wood in 2014 and manages a series of exchange-traded funds (ETFs) that align with its unique approach.

Some of the flagship ETFs include ARK Innovation ETF (ARKK), ARK Genomic Revolution ETF (ARKG), and ARK Next Generation Internet ETF (ARKW).

ARK Invest actively manages its portfolios, making strategic investment decisions based on its research and analysis of disruptive trends.

Notably, its funds were some of the first to offer exposure to GBTC when it in 2015 it was available on OTC exchanges.

Wood, in particular, is on the record as predicting Bitcoin will come to be worth over $1 million over the coming decade.

BlackRock

The logo of Bitcoin ETF applicant Blackrock.

TICKER: $IBIT

BlackRock is the world’s largest investment management firm with trillions of dollars under management.

Founded in 1988 as a risk management and fixed income outfit, it has since evolved into a global investment management giant with a comprehensive suite of financial services for institutional investors, financial professionals, and individual investors.

BlackRock is primarily known for its asset management business, offering a wide range of investment products, including mutual funds, exchange-traded funds (ETFs), and institutional separate accounts. The firm covers various asset classes, from equities and fixed income to alternatives and multi-asset strategies.

Notably, BlackRock CEO Larry Fink has been dismissive of Bitcoin in the past, criticizing the nascent technology and its links to dark market-based criminal activity.

However, this only made the news it would launch a Bitcoin ETF in 2023 more impactful, with Fink making clear he believes the only decentralized cryptocurrency has stood the test of time.

Bitwise

The logo of Bitwise, a Bitcoin ETF applicant.

TICKER: $BITB

Bitwise Asset Management is a cryptocurrency investment firm that specializes in crypto-based investment funds.

Founded in 2017 by Hunter Horsley and Hong Kim, Bitwise aims to provide institutional and individual investors with exposure to digital assets. Its flagship fund is the Bitwise 10 Crypto Index Fund, which tracks a diverse basket of the ten largest cryptocurrencies by market capitalization.

This fund offers investors a way to gain exposure to a broad range of digital assets in a single investment.

Bitwise actively manages the fund by regularly rebalancing its holdings to reflect changes in the market and ensure alignment with the fund’s investment strategy.

Bitwise is known for its research efforts, providing insights into the cryptocurrency market. Further, it has been perhaps the only Bitcoin ETF applicant to launch an ad campaign that was been wildly successful, with the company hiring the former Dos Equis spokesperson, known as “The Most Interesting Man in the World.”

VanEck

The logo of Bitcoin ETF applicant VanEck.

TICKER: $XBTF

VanEck is a global investment management firm founded in 1955 by John C. van Eck in New York City.

Initially, the firm focused on managing gold investments, but over the years, it has expanded its offerings to include a diverse range of asset classes and investment strategies.

The firm provides a variety of investment products, including mutual funds, ETFs, and other investment vehicles, but is known for specializing in commodity investing.

VanEck first filed for a Bitcoin exchange-traded fund (ETF) in 2017, and has since been one of the most active Wall Street firms in the quest to have the investment product approved.

Wisdomtree

The logo of Bitcoin ETF applicant Wisdomtree.

TICKER: $BTCW

WisdomTree Investments is a global asset management company that offers a range of exchange-traded funds (ETFs), exchange-traded products (ETPs), and other investment solutions.

Founded in 2006 by Jonathan Steinberg, the goal of the company was to create innovative investment products for investors seeking exposure to various asset classes including equities, fixed income, currencies, and alternative strategies.

WisdomTree has shown interest in the cryptocurrency space, particularly Bitcoin. The company has submitted regulatory filings for Bitcoin-related exchange-traded products (ETPs).

WisdomTree’s involvement in Bitcoin ETFs is part of its broader exploration of digital assets and blockchain technology.

Invesco

The logo for Bitcoin ETF applicant Invesco.

TICKER: BTCO

Invesco Ltd. is a global investment management company with a diverse range of financial products and services.

Founded in 1935, Invesco has grown into a global investment management firm with a presence in North America, Europe, Asia-Pacific, and other regions.

Invesco provides a wide array of investment products and services, including mutual funds, exchange-traded funds (ETFs), separately managed accounts, and institutional strategies.

Since 2021, Invesco has offered Invesco Physical Bitcoin, a physically backed ETP out of Switzerland, and is currently vying to launch a Bitcoin ETF.

For the Bitcoin ETF in the US, it has notably teamed with Galaxy Digital Holdings, a publicly listed financial services and investment management firm focused on cryptocurrency.

Founded by former hedge fund manager Mike Novogratz, Galaxy Digital aims to be a bridge between traditional finance and the emerging world of digital assets.

Galaxy’s research firm has estimated the addressable market for the ETF in the billions.

Fidelity

The logo of Fidelity Investments, a Bitcoin ETF applicant.

TICKER: $FBTC

Fidelity Investments is a leading financial services company based in the United States, and one of the largest privately owned and operated firms on Wall Street.

Fidelity was founded in 1946, and is known for its focus on investment management, retirement planning, wealth management, life insurance, and other financial services.

However, the company is best known for mutual fund offerings, offering a wide range of funds covering various asset classes, investment styles, and strategies.

Fidelity has been interested in the digital asset space since 2013, when its R&D divisions began mining Bitcoin, its CEO Abigail Johnson saying famously in 2017 that she “loves” Bitcoin.

Since then, the company has been active in the industry. Fidelity Digital Assets provides secure custody solutions for Bitcoin and other cryptocurrencies, catering to institutional clients looking to include digital assets in their portfolios.

Valkyrie

A logo for Bitcoin ETF applicant Valkyrie.

TICKER: $BTF

Valkyrie Investments is a financial services firm specializing in investment management in the digital asset space.

Founded in 2020 and based in the United States, the company has created funds and vehicles that provide exposure to digital assets, such as Bitcoin and other cryptocurrencies.

Valkyrie Investments has submitted proposals for a Bitcoin ETF, awaiting approval from the SEC.

Global X

The logo for Bitcoin ETF applicant Global X.

TICKER: $BITS

Global X ETFs is a well-known provider of exchange-traded funds (ETFs) with a focus on thematic investing.

Thematic ETFs are designed to track specific investment themes or trends, providing investors with targeted exposure to particular sectors or industries.

Global X ETFs covers a wide range of themes, including AI, renewable energy, e-commerce, and more.

Hashdex

The logo for Bitcoin ETF applicant Hashdex.

TICKER: $DEFI

Hashdex is a crypto-focused asset management company that specializes in creating investment products centered around digital assets.

The company was founded in 2018 and is headquartered in Brazil. It primarily focuses on managing investment products related to cryptocurrencies. The company aims to provide investors with exposure to digital assets through regulated and structured investment vehicles.

Franklin Templeton

The logo of Bitcoin ETF applicant Franklin Templeton.

TICKER: N/A

Franklin Templeton is a global investment management firm with a long history and a diverse range of investment products and services. Founded in 1947, it has grown into one of the world’s leading investment management companies.

Franklin Templeton operates globally, with a presence in over 165 countries. The firm has a network of offices and investment professionals around the world.

The Wall Street giant offers a wide array of investment products, including mutual funds, closed-end funds, separately managed accounts, and more. The firm covers various asset classes, such as equities, fixed income, alternatives, and multi-asset strategies.

One of the later entrants into the Bitcoin spot ETF race, Franklin Templeton is not particularly well-known for ETFs. As such, its inclusion in the race is widely seen as a sign of strong Wall Street appetite for a Bitcoin spot ETF product offering.

Bitcoin spot ETFs could soon be approved by the SEC – here’s a list of every major Wall Street applicant from BlackRock to Fidelity.

Crypto News

Reminder to Update Your Bitcoin Wallet’s Firmware

Published

24 mins ago

October 8, 2024

The smell of fall in the air, this weekend I indulged in apple delicacies, watched the changing leaves, and oh yeah, traveled to make sure my Bitcoin custody is up to date…

If you follow me on X, you know that I hold Bitcoin with Casa, a multisig security provider, and that I use the service to manage a few different multisig vaults for various purposes.

This requires keeping a number of keys and wallets up to date, and since I don’t keep any key materials at home, it requires some degree of routine and dedication.

I’ve self-custodied my Bitcoin since 2020, and I’ve built up some good habits along the way. That said, something that always strikes me is just how much more nerve-wracking it is than trusted set-ups.

One thing that always gives me pause: the firmware update.

As I’ve written before, I’m not super technical. My specialty in Bitcoin is history, and while, sure that necessitates that I know about network theory and architecture, there is something about watching digital gears and a loading bar that just makes me super uncomfortable.

I say this all because it’s a less-known issue with the Bitcoin hardware wallets most use to self-custody. These devices, termed “signing devices” by Coldcard creator NVK, do just that, they manage your key material, and they sign on your behalf when making a transaction.

But, being live digital devices, they’re not infallible. They require some upkeep. All you need to do is to scroll past a few updates of people losing Bitcoin on firmware updates to know the drawbacks

It’s a common problem, and the culprit is always a corrupt hardware device (and a lost back-up). Add that multisig vaults, which require a combination of keys to sign a transaction, aren’t yet the norm, and the number of lost Bitcoin just seems to always be up and to the right.

The most common issue – the user doesn’t update their firmware often, waits, and later borks their device, thereafter finding they’ve also misplaced their seed phrase.

Here’s Andreas explaining firmware updates in more detail, though he doesn’t actually update his firmware, he just manages his seed phrase.

Suffice to say, it’s an example of why the world of self-custody, however improved it is, still makes me uneasy. In my case, I updated my wallets without much of an issue. Only one of the wallets even needed a firmware update, and it was simple. (Taking all of a few minutes to prove my coins are safe).

That said, I had to make sure to check my other keys beforehand, and that I had a plurality of the multi-sig keys needed in a worst-case scenario, as well as my seed backups.

This is what makes Bitcoin custody such a high-octane process: you can never be too careful. When you’re your own bank, there’s always a chance that something might go wrong.

This article is a Take. Opinions expressed are entirely the author’s and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.

Live digital devices, Bitcoin hardware wallets are not infallible. They require some routine upkeep, or at least a seed phrase backup.

Crypto News

A Trump Presidency Is The Best Outcome For Bitcoin: NIKOLAUS

Published

18 hours ago

October 7, 2024

Follow Nikolaus On X Here

The other week, I made my opinion clear that I believe Donald Trump is the best candidate for Bitcoin in the upcoming 2024 presidential election. Aaron responded, and after reading it, I feel he’s still missing the bigger picture. Aaron’s main points seem to be that Trump is just using Bitcoiners for their votes, and that he won’t follow through on his promises.

While I partly agree with the former point, I disagree with the latter. Contrary to what I’ve seen some Bitcoiners online say, I do not think Trump has to be a hardcore Bitcoin maximalist and cypherpunk to be a great Bitcoin president. Here’s why.

Trump needs all the votes he can get. Of course he is going to try and appeal to our voters, especially when most of us already have right-leaning political views. It makes sense for the Republican party to adopt freedom money, given they lean more towards the principles of freedom now, while the Democrats have become more authoritarian.

Voting for Trump, then, is a win-win. He gets more votes (some in critical swing states), and we get a better environment for our industry. Sounds like a good trade to me.

And that leads me into what I disagree with Aaron on. I believe that Trump will keep most, if not all of his promises he’s made when it’s come to Bitcoin. Because, well, most of the promises he has made seem like relatively easy things to implement. It’s not like he’s alone on the issue – there are now many pro-Bitcoin senators and congresspeople to hold him accountable.

There’s Senator Cynthis Lummis, who wants to create a strategic Bitcoin reserve (using BTC already owned by the government). There is Congressman Tom Emmer, who already wants to fire SEC Chair Gary Gensler and appoint someone better for the industry. You can go to StandWithCrypto.com to see the rest.

If elected, Trump would have loads of other, arguably more important issues on his plate to deal with. The fact that his policies would give Bitcoiners a friendly regulatory environment to build in, stop anti-Bitcoin politicians from continuing to attack this industry, all without Trump meddling in it, sounds like the perfect storm for innovation.

The fact that he’s done things like bring Bitcoin miners to Mar-a-Lago to better understand the industry is enough evidence to make this point.

I think many are overly critical of Trump because he said he wasn’t a fan of Bitcoin in 2019. But that was ages ago, and everything has changed since then. It doesn’t make sense to hate on people for coming around to Bitcoin after not being a fan of it. (I do, however, think it is ok to be critical of the non-Bitcoin initiatives Trump has promoted, like World Liberty Financial, but even that isn’t worth losing all the benefits of his presidency.)

So, why would Trump free Ross now when he already had the chance to last term?

In politics, as in Bitcoin, it’s all about incentives, and the incentives here are aligned.

This article is a Take. Opinions expressed are entirely the author’s and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.

Trump would allow a friendly regulatory environment for Bitcoiners to thrive in.

Crypto News

Uncle Jack’s Chili is Good for Bitcoin

Published

3 days ago

October 5, 2024

Follow Tommy on X.

This interview on the Danny Jones Podcast episode 263 both felt like it was being channeled from my own brain while also hitting me with an overload of new information. It hit the spot, as someone who has long held the opinion that all modern wars and psychological operations are symptoms of easy fiat money, and that the government is simply the biggest criminal cartel that grows large enough to self-legitimize its racket and assumes the role of moral authority. Kruse postulates that the goal of globalist transhumanists is to replace the U.S. Constitution, a document that is designed to protect individuals from government, with the U.N. Charter, a document designed to usurp it and provide tyrannical power to proxies of the industrial military complex.

“I would sit down with, probably, Adolf Hitler before I would sit down with Sergey Brin.”

I wasn’t expecting to hear about Bitcoin when I started listening, but I was pleasantly surprised to hear him bring it up early and often, framed as a kryptonite to the transhumanists he portrays as his “mortal enemy”.

“The reason why Bitcoin content gets removed is because DARPA is not interested in Bitcoin. Their energy to fuel their whole process is cheap fiat money.”

Uncle Jack hits on topics like Kleiber’s law, allodial wealth, DARPA, MK-ULTRA (and it’s subsequent versions), the Stanford marshmallow experiment, JFK’s assassination, sunlight medicine, SV40, cancer, COVID and the jabs, and even invisibility, somehow connecting it all subtly to Bitcoin, with a ‘fix the money, fix the world’ subtext.

“There’s a pattern with the Industrial Military Complex. When they want to do something, they don’t ask for forgiveness, they don’t ask for permission either, they just do it.”

The main ingredient was essentially that the Federal fiat system is a big Ponzi scheme, citing Roth IRAs and retirement funds specifically. And that there is a mortal war waged on us by The State to make sure enough of us die through cancers, wars or otherwise so that we aren’t all performing a bank run.

The Industrial Military Complex is a machine that is powered by cheap money: fiat money. Kruse aligns Bitcoin as a solution to the fiat war machine, which is preaching to the choir for me, but exciting to hear on a non-Bitcoin show with a large audience like the Danny Jones Podcast.

This article is a Take. Opinions expressed are entirely the author’s and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.

A self-proclaimed Bitcoin pleb and actual brain surgeon, Dr. Jack Kruse, has the sauce and I want everyone to try it.