Blockchain ETFs are not far away...

Updated: Aug 14

With the addition of Coinbase (NYSE:COIN) to the world of equities, it seems blockchain related investing is going from strength to strength.

Upon closing at $328.28 a share, this gave a market cap of over USD $85 billion for the crypto exchange and a lot of attention gained for the future of the bitcoin, blockchain and distributed ledger technology. For context, that would put it in the top 100 of the S&P 500 companies by marekt cap, and bigger than General Motors, Gilead Sciences and others.

So how far away are we from seeing a blockchain ETF? Well, it’s still awaiting approval from the SEC (Securities and Exchange Commission) in the US but the ETF Issuer, WisdomTree was able to list their bitcoin related exchange traded product, WBIT (WisdomTree Bitcoin ETP) on the Toronto Stock Exchange.

More recently, Van Eck filled in their 19b-4 form in mid-March 2021 which would see them list a Bitcoin Trust ETF (see CBOE BZX Exchange Rulemaking page). However, all previous attempts have failed, including a 2018 attempt from the Winklevoss twins (of pre-Facebook fame) who had their attempt at a bitcoin ETF rejected (Winklevoss twins bitcoin ETF rejected by SEC) and it wasn’t their first. Despite these rejections, with the incoming chair Gary Gensler being bullish on crpyto and blockchain the signs look far more positive this time.

** Update to paragraph above - as of April 24, the SEC has also begun the review process of another bitcoin ETF, this time from Kryptcoin. They tried, and failed back in 2019 **