Bitcoin (BTC) Price Shoots 8% As WisdomTree and Invesco File for Bitcoin ETFs

21. Jun 2023 Posted by Akolkar B on News

Just a week after world’s largest asset manager BlackRock filed for its spot Bitcoin ETF with the US SEC, two other players WisdomTree and Invesco made a similar move.

As per the filing from WisdomTree on Tuesday, June 20, the asset manager said that the WisdomTree Bitcoin Trust shall be listed on the Cboe BZX Exchange and will trade under the ticker Cboe BZX Exchange.

This is not the first time that WisdomTree has been filing for a spot Bitcoin ETF. However, in the past, the SEC has resisted on allowing such Bitcoin ETFs. The federal securities regulator has cited risks such as fraud, manipulation happening in the spot market for cryptocurrencies. However, the regulator has been open to approving the futures-based Bitcoin ETFs.

With financial behemoth BlackRock joining the race for the spot Bitcoin ETF, there’s renewed optimism in the crypto space regarding the arrival of the product. Along with WisdomTree, the $1.5 trillion asset manager Invesco has also filed for a spot Bitcoin (BTC) exchange-traded fund (ETF).

Previously in 2021, Invesco had filed for the spot Bitcoin ETF in collaboration with Galaxy Digital. In its recent submission, Invesco highlighted the importance of having a spot Bitcoin ETF and stressed that the lack of such a product pushes investors towards riskier options. The filing specifically mentioned cases of insolvencies related to platforms such as FTX, Celsius Network, BlockFi, and Voyager Digital Holdings.

It is clear that with BlackRock filing for Bitcoin ETF, other big market players have turned extremely optimistic about the regulatory developments in the future. The recent flood of spot Bitcoin ETF filing by some of the world’s largest asset managers has led to a major surge in the price of Bitcoin.

In the last 24 hours, the Bitcoin (BTC) price has gained over 8% and is currently trading at around at $28,942 with a market cap of $561 billion. Along with Bitcoin, the top ten altcoins have also rallied by 4-5% in the last 24 hours.

With today’s move, Bitcoin has extended its market dominance to 50% of the overall cryptocurrency market cap. It is clear for the fact that the recent rally has been backed by institutional demand for BTC. In the past few days, the Grayscale Bitcoin Trust (GBTC), valued at $16.9 billion, has shown better performance compared to the cryptocurrency itself following the application by the largest ETF issuer for the iShares Bitcoin Trust. As a result, the discount of GBTC to its underlying Bitcoin holdings has decreased to around 37%, compared to 44% a week ago.