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 

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

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

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

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

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

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

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 

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

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

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

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 

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

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.

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It has officially been a decade since Ross Ulbricht, the man behind the popular online marketplace Silk Road, was sentenced to life in prison without the possibility of parole. His crime: enabling free people to freely trade.

In the years since, his case has been a lightning rod for debates about internet freedom, drug policy, and the criminal justice system, leaving a lasting impact on the Bitcoin and cryptocurrency community. 

As the years roll by, Ulbricht remains in prison, still seeking justice for what he believes was an unfair sentence.

In 2014, Ulbricht was arrested and accused of running Silk Road, a clandestine online marketplace that allowed users to buy and sell a wide range of goods, including drugs, using Bitcoin as the primary currency. His arrest was a pivotal moment in the history of Bitcoin, highlighting both its potential for censorship resistance and its association with illicit activities.

Critics argue that Ulbricht’s sentence is disproportionate to his crime, considering the non-violent nature of his offenses. They assert that his trial was marred by irregularities, including allegations of corrupt agents involved in the investigation. These factors have fueled a fervent campaign for his release, with supporters calling for clemency and a second look at his case.

Ulbricht himself has not remained silent during his incarceration. He has penned articles from behind bars, shedding light on his perspective and the lessons he’s learned during his time in prison. In these writings, he has highlighted the role of Bitcoin as a symbol of freedom and resistance against government overreach.

He’s also touched on his unique personal experience as an early adopter and innovator within the Bitcoin market.

“The early adopters of Bitcoin had no way of knowing what we do now. All they had was a dream, a conviction and enough infectious enthusiasm to bootstrap a digital contrivance into a multi-billion-dollar phenomenon we are only beginning to see the effects of,” he wrote just last year.

In his articles, Ulbricht has expressed deep regret for his actions and the negative consequences they may have had. However, he also contends that the harshness of his sentence is a reflection of the government’s desire to make an example of him and stifle the potential of Bitcoin as a tool for individual liberty.

The cryptocurrency community continues to rally behind Ulbricht, advocating for a fair review of his case and a reconsideration of his sentence. They argue that his imprisonment serves as a stark reminder of the ongoing battle for internet freedom, privacy, and the responsible use of Bitcoin.

Of late, this has included outreach to pro-Bitcoin U.S. presidential candidates, including Democrat nominee Robert F. Kennedy Jr., as well as Republican hopeful Vivek Ramaswamy, who have suggested they are receptive to the cause.

As Bitcoin and digital assets gain mainstream acceptance, the case of Ross Ulbricht remains a powerful symbol of the complex relationship between technology, regulation, and individual rights. 

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The Catawba Nation, a sovereign federally recognized tribal government, has established the Catawba Digital Economic Zone (CDEZ), a special jurisdiction within the Catawba Reservation in South Carolina, aimed at empowering emerging digital technology companies, including Bitcoin companies. The CDEZ has recently achieved a significant milestone with the enactment of the Banking and Financial Services Code, a comprehensive legal framework that combines the best practices from the financial codes of South Dakota, North Dakota and Wyoming.

The CDEZ Banking Commission, an integral part of the regulatory landscape within the jurisdiction, is now seeking experienced banking regulators and financial experts to shape the future of the zone’s banking practices. The commission’s responsibilities include authorizing banking operations, granting bank charters and ensuring competitive equality among financial institutions. Additionally, the commission will oversee various aspects of bank operations such as mergers, branch openings and closings and changes in location, with periodic examinations to ensure regulatory compliance.

“The Catawba Digital Economic Zone offers a unique opportunity for seasoned banking regulators to contribute to the development of a robust digital banking system,” said a press release shared with Bitcoin Magazine. “We are seeking applicants with expertise in policymaking, financial regulations and banking to harmonize traditional and digital banking practices while fostering innovation.”

The CDEZ’s invitation to potential regulators and financial experts highlights its commitment to maintaining the integrity and stability of the financial sector within the zone. The commission holds the authority to enforce disciplinary actions, including the removal of individuals engaged in unlawful banking activities or unsafe practices. This emphasis on regulatory compliance underscores the CDEZ’s dedication to upholding high standards within the financial industry.

Applicants interested in becoming Banking Commissioners for the CDEZ can submit recommendations and applications through various channels, including the CDEZ Discord Server, an online form available on their website, or via email ([email protected]). The Catawba Nation encourages seasoned professionals with a background in policymaking, financial regulations and banking to apply and review the Catawba Banking And Financial Services Code Guide for more information.

With the establishment of the Catawba Digital Economic Zone and the call for experienced banking regulators, this innovative jurisdiction seeks to leverage its unique position to attract Bitcoin companies and foster a modern economy driven by responsible innovation and consumer protection.

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Crypto exchange Binance.US and its founder Changpeng Zhao (CZ) are reportedly looking for ways to reduce his stake in the firm amid harsh scrutiny from United States federal regulators over the past year. 

The crypto executive — Binance.US’ majority owner — has reportedly been trying to reduce his stake in the U.S.-based exchange since last summer, according to a May 11 report by The Information that cited people familiar with the matter.

Binance and Changpeng Zhao have seen intense scrutiny from United States federal regulators over the past year.

In March, the Commodity Futures Trading Commission sued Binance and CZ for operating what it alleged was an “illegal” exchange with a “sham” compliance program.

The firm was accused of willfully evading U.S. law, “while engaging in a calculated strategy of regulatory arbitrage to their commercial benefit.”

In response to the lawsuit, Binance has claimed regulatory compliance, telling Cointelegraph, “We have implemented a robust ‘three lines of defense’ approach to risk and compliance,” at the time.

Since then, Binance.US bosses have reportedly been seeking ways to reduce CZ’s stake and influence over the company, worried that they may not be able to acquire certain regulatory licenses as long as CZ remains the majority owner.

Cointelegraph reached out to global exchange Binance, which did not comment on the matter related to Binance.US and CZ as an individual and majority shareholder of the U.S. exchange. Binance.US did not respond by the time of publication.

Related: Here’s why CFTC suing Binance is a bigger deal than an SEC enforcement

In February, the SEC sued Paxos, the issuer of Binance’s stablecoin BUSD, resulting in the end of minting. Meanwhile, the regulator blocked approval of a Binance.US bid for assets belonging to bankrupt crypto lending firm Voyager Digital.

It appears that the Securities and Exchange Commission is specifically targeting American-based crypto exchanges to bring them under the same stringent regulations as banks and stock brokerages.

The result has been an exodus from the U.S., with major players, including Coinbase, Gemini, Ripple, and Galaxy Digital, among those eyeing a move offshore following recent SEC enforcement action.

Other major exchanges such as Kraken and Bittrex have already fully or partially shuttered services in the United States as the war on crypto continues.

Magazine: Does SEC Chair Gary Gensler have the final say?