While large U.S. asset management companies, from Blackrock to Franklin Templeton, have applied for Bitcoin spot ETFs, industry experts are pointing out fund industry giants 'Schwab Asset Management' and 'State Street Global Advisors' as the next players to join the ranks. Blockworks reported on the 19th (local time).
BlackRock, which manages assets worth $9.4 trillion (KRW 1.24 trillion), launched a Bitcoin spot ETF on June 30, followed by Fidelity and Invesco. It is known that the total asset management of the companies applying is currently at 17 trillion dollars (2 trillion won).
Rick Edelman, who founded Edelman Financial Engines, predicted that Franklin Templeton's application would have a huge impact and that more large financial institutions would follow suit.
Rick Edelman said, “Even asset management companies that do not support Bitcoin spot ETFs will realize that they may lose operating funds and customers to competitors who offer such products,” and diagnosed a situation where there is no other option than providing a Bitcoin spot ETF. .
Nate Geraci, CEO of ETF Store, who mentioned 'Schwab Asset Management' as a 'dark horse' in the Bitcoin spot ETF market last June, said on the 13th of this month, "There are claims that Bitcoin is a fraud or that it will disappear, but Blackrock, Fidelity , Invesco, and Franklin Templeton believe that this product is worth investing time in,” he said, emphasizing that the world’s largest asset managers support the feasibility of Bitcoin products.
ZX Squared Capital co-founder CK Jeong pointed out State Street Global Advisors (SSGA) as one of the candidate companies that could enter the Bitcoin spot ETF race.
He said State Street operates $1.1 trillion worth of U.S. ETFs, of which the second-largest ETF is the $54 billion SPDR Gold Trust (GLD). “Through our expertise and influence, we are transforming the SPDR GLD ETF into the SPDR BTC ETF.” “We are in a unique position to expand,” he emphasized.
CZ Jeong believed that ProShares, which provides a Bitcoin futures ETF, could also become a dominant player if it enters the spot ETF market. ProShares operates $65 billion worth of U.S. ETFs, of which $900 million is managed through the Bitcoin Strategy ETF (BITO).
Schwab Asset Management has never announced its intention to launch a Bitcoin spot ETF. However, David Bossett, head of equity product management innovation at Schwab, mentioned in January last year, "We are evaluating ways to provide opportunities in cryptocurrency spot or blockchain technology in the form of ETFs," and last year, he said, It showed interest in the industry through the launch of the 'Schwab Crypto Theme ETF (STCE)' for investment exposure and sponsorship of EDX Market, an institutional-level cryptocurrency exchange launched in June of this year.
State Street declined to give a specific answer about ETFs, saying, "We are continuously evaluating our product lineup and pricing structure to provide attractive solutions that help investors achieve their goals." Laurie Tobin, head of the ETF business division, also said through Financial News in June, “We have no plans to launch cryptocurrency-related products at the moment.” Meanwhile, the company has reportedly established a digital finance department in 2021 and is working on tokenization of funds and personal assets this year.
