An investment vehicle known as a Bitcoin ETF tracks the price of the cryptocurrency and gives investors exposure to it without requiring them to purchase and hold it themselves. Traditional exchange-traded funds (ETFs) that track the performance of equities or commodities have a structure similar to that of an ETF. The U.S. Securities and Exchange Commission (SEC) has not yet approved a spot Bitcoin ETF, despite multiple attempts to introduce Bitcoin exchange-traded funds (ETFs) in the country. Concerns over asset custody, investor protection, and market manipulation have been voiced by the SEC.
The regulatory authorities have been hesitant to approve a Bitcoin spot ETF. Usually, a spot ETF entails the physical delivery of the underlying asset, in this case, Bitcoin.
7RCC, a crypto asset management firm applies for Bitcoin ETF
Along with many other prominent asset managers, 7RCC, a crypto asset manager, has submitted an application to the U.S. Securities and Exchange Commission to provide an exchange-traded fund (ETF) for spot bitcoin trades.
The fund’s investment strategy, according to a proposed preliminary prospectus made public in a Monday S-1 filing by 7RCC, is to hold a mix of bitcoin and financial instruments to increase exposure to Carbon Credit Futures.
The environmental, social, and governance investing firm 7RCC stated in the filing that it plans to choose Gemini as the fund’s Bitcoin custodian. The suggested ETF enables investors to diversify their portfolios, according to a statement released by Gemini on Monday.
BlackRock’s proposed spot bitcoin exchange fund is given a ticker in a recent SEC filing
IBIT is the ticker for BlackRock’s planned exchange-traded fund for spot bitcoin. The new text regarding the establishment and redemption methodology of the fund is included in the updated filing.
An “in-kind” redemption mechanism would allow the asset manager more freedom to manage the portfolio, which is probably what BlackRock wants. However, the SEC probably prefers the so-called cash model, which would force BlackRock to remove the bitcoin from storage, sell it immediately, and then return the money to the investor should they wish to redeem shares.
WisdomTree updates its application for a spot Bitcoin ETF
WisdomTree has updated S-1 amendment filing for the Spot Bitcoin index fund. It specified that ETF baskets could only be purchased or redeemed for a specific quantity of money or Bitcoin. “Shares shall not be issued until the Bitcoin or equivalent amount is credited to the Prime Broker’s or Custodian’s account of the Trust.”
Ark and 21 Shares Bitcoin ETF gets listed on the DTCC site
Ark and 21Shares spot Bitcoin ETF is also now listed on the Depository Trust & Clearing Corporation with the ticker symbol $ARKB.
Disclaimer: This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
