BlackRock and Invesco Enter Bitcoin ETF Space, Vanguard and State Street Stay Out

According to Blockworks, the world's largest asset manager, BlackRock, and Invesco, the fourth-largest ETF asset holder, are entering the bitcoin ETF space. BlackRock has nearly $2.6 trillion in assets under management in its US ETFs, while Invesco has $450 billion. Invesco partnered with crypto-focused Galaxy Digital in 2021 and filed its latest spot bitcoin ETF proposal in 2023. However, Vanguard, State Street, and Charles Schwab, which manage $2.3 trillion, $1.1 trillion, and $315 billion respectively, have chosen not to get involved in the bitcoin ETF race. A Vanguard spokesperson stated that the company believes the investment case for cryptocurrencies is weak and that they have no intent to offer a spot bitcoin ETF or any other crypto-related products. State Street Global Advisors, ranking third in US ETF assets under management, launched the industry's first ETF, the SPDR S&P 500 ETF (SPY), in 1993. Despite being known as an ETF pioneer, State Street has opted not to enter the spot bitcoin ETF race. A spokesperson said they continuously evaluate their lineup of ETFs but do not offer a crypto ETF at this time. Sumit Roy, a senior analyst for ETF.com, noted State Street's standing as the world's largest custodian and its build-out of digital asset-focused custody solutions. He suggested that the firm might be focusing on that part of the ecosystem rather than getting involved in the crowded spot bitcoin ETF race. Charles Schwab's asset management division has also not filed for a spot bitcoin ETF. David Botset, head of equity product management and innovation at Schwab Asset Management, said in January 2022 that the company was evaluating opportunities such as spot cryptocurrency or blockchain technologies in the form of an ETF. A Schwab spokesperson declined to comment on future crypto ETF plans. Roy believes that more creative funds adding other types of exposures on top of just bitcoin, such as a covered call bitcoin ETF, are likely to be seen in the future.