BlockFi Files For Spot Bitcoin ETF

BlockFi Files For Spot Bitcoin ETF

The fund joins the many spot bitcoin ETF filings already awaiting approval.

sumit
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Senior ETF Analyst
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Reviewed by: Sumit Roy
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Edited by: Sumit Roy

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Crypto trading and lending platform BlockFi joined the race for the first U.S.-listed spot bitcoin ETF Tuesday. The company, which offers crypto interest accounts, trading accounts and asset-backed loans, filed a prospectus for the BlockFi NB Bitcoin ETF, a fund that would directly own bitcoin.

The SEC has so far declined to approve spot bitcoin ETFs, though it finally did allow the bitcoin futures-based ETFs ProShares Bitcoin Strategy ETF (BITO) and Valkyrie Bitcoin Strategy ETF (BTF) to debut last month.

BITO, the first to launch, has been a sensation, picking up $1.3 billion in assets in less than a month. BTF, the second mover, hasn’t been nearly as successful, but it still has a respectable $50 million in assets under management.

For its part, BlockFi filed to launch a bitcoin futures ETF of its own in October, the BlockFi Bitcoin Strategy ETF (BBBB). That ETF would automatically become effective on Dec. 22, based on current ETF listing rules.

Neither of these products is unique—there is a plethora of spot and futures bitcoin ETFs awaiting approval—but BlockFi has an existing consumer base that it can potentially market these funds to.

BlockFi’s distribution advantage may help offset its late entry into the space. The aforementioned BITO currently dominates the bitcoin futures ETF segment, while the VanEck Bitcoin Trust, a spot ETF, could launch as soon as next week if the SEC approves it.

If it were to launch next week, the VanEck product would have a massive first-mover advantage in the spot bitcoin ETF category. On the other hand, an SEC rejection would dim hopes that any spot bitcoin ETF will come to market in the near future.

Email Sumit Roy at [email protected] or follow him on Twitter @sumitroy2

Sumit Roy is the senior ETF analyst for etf.com, where he has worked for 13 years. He creates a variety of content for the platform, including news articles, analysis pieces, videos and podcasts.

Before joining etf.com, Sumit was the managing editor and commodities analyst for Hard Assets Investor. In those roles, he was responsible for most of the operations of HAI, a website dedicated to education about commodities investing.

Though he still closely follows the commodities beat, Sumit covers a much broader assortment of topics for etf.com, with a particular focus on stock and bond exchange-traded funds.

He is the host of etf.com’s Talk ETFs, a popular video series that features weekly interviews with thought leaders in the ETF industry. Sumit is also co-host of Exchange Traded Fridays, etf.com’s weekly podcast series.

He lives in the San Francisco Bay Area, where he enjoys climbing the city’s steep hills, playing chess and snowboarding in Lake Tahoe.