The pursuit of a Bitcoin exchange-traded fund (ETF) has been a lengthy journey marked by various developments.
Initially proposed in July 2013 by Cameron and Tyler Winklevoss, known for their Facebook involvement, the Winklevoss Bitcoin Trust aimed to open Bitcoin to institutional investors. Despite their forward-thinking initiative, the SEC rejected the proposal in March 2017, citing market surveillance and regulatory concerns. This rejection triggered a string of subsequent ETF rejections.
Other attempts followed, including SolidX and VanEck’s proposals, Barry Silbert’s publicly traded trust GBTC, and Grayscale’s filing to convert GBTC to an ETF, yet none received approval. Numerous hopefuls emerged post-2017, such as Bitwise, Wilshire Phoenix, and Realty Shares ETF Trusts, proposing various ETF models, all facing rejections.
Notable events included regulatory shifts, Jay Clayton’s resignation as SEC Chair in December 2020, and Gary Gensler’s nomination, creating optimism for change. However, Gensler’s tenure has seen a stringent stance on the industry.
Applications continued in 2021 and 2023 from Valkyrie, NYDIG, Fidelity, and others, showing promise with modifications made to meet SEC standards. Despite Bloomberg’s 90% prediction for approval, uncertainty lingers regarding potential SEC delays, signaling possible market volatility upon the decision.
