Cboe files with the SEC to list Fidelity’s bitcoin ETF as the number of firms seeking approval grows

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The Chicago Board Options Exchange has applied with the US Securities and Exchange Commission Monday to list Fidelity’s Wise Origin Bitcoin exchange-traded fund, according to a Form 19b-4.

Fidelity in March applied to launch an ETF to track the performance of bitcoin. The fund will hold bitcoin and value its shares based on prices from major cryptocurrency exchanges such as Coinbase and Bitstamp, according to a regulatory filing.

Cboe’s acknowledgment to be Fidelity’s exchange partner moves the application process with the SEC, CoinDesk first reported.

An exchange partner such as Cboe BZX Exchange or the New York Stock Exchange is necessary to file a Form 19b-4. Only then will the SEC review the application.

The agency will now have to respond with a decision to reject or accept the application within 45 days. The SEC has 240 days to evaluate the application in total.

The SEC in the past has rejected every cryptocurrency ETF that has applied, which now total to nearly a dozen.

Most recently, asset manager VanEck applied to launch an ethereum ETF. The VanEck Ethereum Trust would list shares on the Cboe, according to an S-1 filing.

VanEck and the Cboe are waiting for the SEC to render a decision on whether it can list a bitcoin ETF, which the asset manager applied for in March. The regulator delayed a decision until at least July 17.

Still, experts believe that with the SEC’s new chairman Gary Gensler, who used to be an MIT Sloan School of Management professor teaching blockchain technology, the US will soon have its first-ever cryptocurrency ETF.

“I feel like it’s inevitable. It’s no longer ‘if’ but ‘when’ and I think the question of when is probably in 2021. That’s my prediction,” Dante Perruccio, president international of Wave Financial, a US-regulated digital asset manager, told Insider.

In Canada, the first publicly traded ETF, the Purpose Bitcoin ETF, has been approved, as well as ethereum ETFs. Brazilian regulators have reportedly approved two bitcoin ETFs.

The surge in interest in cryptocurrency ETFs rides on the skyrocketing prices of cryptocurrencies. Bitcoin this year has climbed 95% year to date, ether 380%, and dogecoin around 13,000%.

Read more: Fundstrat’s head of digital assets research walks us through his $100,000 and $10,500 year-end price targets for bitcoin and ether – and shares the 8 tokens he’s bullish on

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VanEck files with the SEC for an Ethereum ETF as it waits for the regulator to approve its bitcoin fund

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Ether is the cryptocurrency of the Ethereum network.

  • Asset manager VanEck has filed to list an Ethereum exchange-traded fund.
  • The firm is seeking SEC’s permission to list shares of its VanEck Ethereum Trust.
  • The SEC delayed a decision on whether to greenlight VanEck’s bitcoin ETF until July.
  • See more stories on Insider’s business page.

Asset manager VanEck is seeking US regulatory approval to launch an Ethereum exchange-traded fund, with the move taking place as the company waits for word on whether it will be able to introduce trading of the first bitcoin ETF in the US.

The VanEck Ethereum Trust would list shares on the Cboe BZX Exchange, according to an S-1 filing with the Securities and Exchange Commission on Friday.

The firm said the trust, in aiming to reach its investment objective, will hold ether, the currency native to the Ethereum blockchain network, and value its shares daily based on the reported MVIS CryptoCompare Ethereum Benchmark Rate. Ether is the world’s second-largest cryptocurrency by market capitalization, behind bitcoin.

VanEck and the Cboe are waiting for the SEC to render a decision on whether it can list a bitcoin ETF, which the asset manager applied for in March. The regulator last week delayed a decision until at least July 17, leaving investors waiting on the US to greenlight the country’s first bitcoin ETF.

Wall Street institutions are increasingly embracing or signaling openness to including cryptocurrency into their operations. This week, S&P Dow Jones index announced the launch of three indices tracking the performance of the bitcoin and ethereum – the S&P Bitcoin Index, S&P Ethereum Index, and the S&P Cryptocurrency MegaCap Index.

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Grayscale’s bitcoin and Ethereum funds now generate as much revenue as Vanguard’s 82 ETFs

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  • The crypto boom in bitcoin and ether has helped Grayscale generate as much revenue as Vanguard does from its suite of 82 ETFs, according to a report from ETF.com.
  • Grayscale’s bitcoin and Ethereum funds generate nearly $1 billion in estimated combined revenue.
  • Bitcoin’s and ether’s respective year-to-date rise of about 100% and 300% have helped boost Grayscale’s assets under management to record levels.
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The surge in bitcoin and ether over the past year has helped push Grayscale’s estimated revenue from just two funds it manages to about $1 billion, the same amount Vanguard generates from its entire suite of 82 ETFs, according to a report from ETF.com.

The Grayscale Bitcoin Trust, a semi-closed-end fund that charges a 2% annual fee, generates $756 million in estimated revenue on its $36 billion in assets under management.

When you add in the estimated revenue generated from the Grayscale Ethereum Trust’s 2.5% annual fee and its $10 billion in assets under management, Grayscale’s two funds generate about $1 billion in annual revenue.

“For Grayscale to generate close to a $1 billion from just two products – the amount Vanguard takes in from all 82 of its ETFs – is truly impressive,” ETF.com analyst Sumit Roy said.

Grayscale’s assets under management have soared to record levels on the back of a big rally in bitcoin and ether, which is up 83% and 342% year-to-date, respectively.

Besides the big rally in crypto over the past year, Grayscale benefited from being the only game in town in terms of offering investors the ability to easily add crypto exposure into their brokerage portfolios without having to directly buy bitcoin with a digital wallet.

That years-long exclusivity gave Grayscale the ability to charge a hefty fee relative to most funds and ETFs.

But Grayscale’s dominance in the bitcoin space could see pressure in the coming months as competition increases. Already, the Osprey Bitcoin Trust undercuts Grayscale’s fee by 1.50%, and the SEC is reviewing the approval of several bitcoin ETFs, which could open the floodgates for investors looking too easily add or remove bitcoin from their investment portfolios.

If the SEC does approve one or many of the pending bitcoin ETF applications, it would likely be both cheaper and easier to access for investors relative to the over the counter crypto trust products from Grayscale and Osprey, as the ETFs would be listed on an exchange rather than on the OTC.

But with Grayscale’s multi-year headstart, it could take a long time for asset management companies to chip away at its success.

Read more: Ex-Ark analyst James Wang breaks down his bull case for Ethereum as its token breaches an all-time high of $3,300 – and explains why it could eventually reach $40,000

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