Investment manager Cathie Wood and her Ark Invest firm are hailing the recent string of institutional bitcoin ETF applications. BlackRock, Invesco and WisdomTree filed for bitcoin exchange-traded funds in the past two weeks.
Meanwhile, Hong Kong-based HSBC Bank launched offerings for bitcoin and ethereum futures ETFs on Monday.
Cathie Wood, Ark Weigh In On Bitcoin ETFs
"BlackRock's decision to file for a bitcoin ETF signals that large institutional players are positive on the long-term outlook for the digital asset," Wood's Ark Invest wrote in a research note Monday. BlackRock initially filed for its iShares Bitcoin Trust with the Securities and Exchange Commission on June 15.
Ark believes that BlackRock may have an easier path to approval than past applications, based on a surveillance-sharing agreement it worked up with Nasdaq. The agreement prevents bitcoin-related market manipulation by increasing transparency and sharing information on market trading activity, clearing activity and customer identification.
Based on Ark's research, other institutional applicants should be able to amend their filings with similar agreements at little cost.
Ark noted it also filed a BTC ETF application in partnership with crypto exchange traded products company 21 Shares on April 25. That application is the only one ahead of BlackRock's awaiting SEC approval, Ark noted.
"BlackRock's entry is a promising step toward the acceptance of a Bitcoin ETF and could be a significant turning point in bitcoin's path to institutional acceptance," the firm wrote.
HSBC Launches Crypto Futures ETFs
HSBC, Hong Kong's largest bank, launched BTC and ethereum futures ETFs for its local customers on Monday through its "Easy Invest" mobile app. The new feature offers cryptocurrency exposure to BTC and ETH futures based on derivative contracts that trade on commodity exchanges.
The first offerings include CSOP Bitcoin Futures ETF, CSOP Ethereum Futures ETF and Samsung Bitcoin Futures Active ETF, Decrypt reported.
Hong Kong took steps to introduce crypto legislation last year. Meanwhile, China introduced a blanket ban on the digital assets in late 2021.
Fund managers Invesco and WisdomTree refiled applications with the SEC for spot bitcoin ETFs late last Tuesday.
Invesco refiled its application in conjunction with Galaxy Digital after first filing for a physically backed bitcoin ETF in 2021. It also applied for a bitcoin futures ETF but dropped the effort in October 2021 after ProShares received approval for its ProShares Bitcoin Strategy ETF.
WisdomTree is on its third attempt for regulatory approval after two previous applications were denied in 2021 and 2022.
Recent Price Action
BTC rallied the last two weeks following BlackRock's application, soaring to $31,411 intraday Friday — its highest level since last May. The world's largest cryptocurrency dived below its $25,000 level for the first time since March on June 15 after the SEC filed charges against Binance and Coinbase for rules violations at the beginning of the month.
Bitcoin traded around $30,650 Tuesday afternoon after eclipsing $31,000 intraday. It's rocketed about 85% so far this year.
You can follow Harrison Miller for more stock news and updates on Twitter @IBD_Harrison
