The U.S. Securities and Exchange Commission (SEC) has so far delayed six Bitcoin exchange-traded fund (ETF) applications. The entities behind these applications were Fidelity, WisdomTree, Valkyrie, VanEck, Bitwise, and Invesco.
The SEC is unlikely to approve a Bitcoin-based ETF anytime soon, as it needs to address several concerns regarding investor protection, market manipulation, and fraud.
The ETF applications differed from each other in terms of the composition of the underlying assets and the underlying structures. Some proposed a fully-backed ETF, which would invest in physically-settled Bitcoin while others proposed an ETF backed by derivatives such as futures and options contracts.
Recently, media reports suggest that BlackRock, a large investment management firm, may join the list of applicants and file an application for a Bitcoin ETF soon. It is important to note that such rumors have been floating around for quite some time and there is no confirmation from the firm yet.