Following multiple regulatory filings, we will likely see the first bitcoin exchange-traded fund (ETF) come to market in the United States soon.
In late January, Valkyrie Digital Assets filed for approval of a bitcoin ETF with the U.S. Securities and Exchange Commission (SEC), in the hopes of offering the first-ever bitcoin ETFs in the United States. Following Valkyrie’s filling, NYDIG followed suit in February.
Then, earlier this month, Cboe Global Markets submitted an SEC filing to list and trade shares of VanEck’s bitcoin ETF — a product that VanEck has been attempting to offer for years, despite repeated rejections from the SEC. VanEck’s latest bitcoin product under regulatory review is its proposed VanEck Bitcoin Trust.
As bitcoin gains more institutional acceptance, ticking all of the boxes of what makes a credible asset in the process, an ETF which mirrors its price could serve as a window for traditional brokerage investors across the board to gain exposure to bitcoin from their accounts.
As more instruments like these continue to emerge, there will be less isolation between cryptocurrencies and legacy financial instruments. This will aid investors in integrating their digital asset holdings along with every other asset in their portfolios.
Also, as the likes of Paypal and Robinhood's move to facilitate cryptocurrency transactions coupled with the adoption of the Lightning Network as a solution for scale, all of the fears about bitcoin’s transaction throughput are becoming things of the past.
With all of these improvements on the Bitcoin landscape and the rush of recent regulatory filings, a U.S. bitcoin ETF appears closer than ever.