By
Chimamanda U. Martha
April 26th, 2024
BlackRock, Grayscale, Invesco, and several others now have Bitcoin ETF ads running on Google after rule changes took effect last week.
Several asset managers have begun advertising campaigns for their spot Bitcoin exchange-traded funds (ETFs) as Google changes marketing rules on cryptocurrency products. According to an FT report, BlackRock, Grayscale, Bitwise, Invesco, and Fidelity already have live Bitcoin ETF ads running on Google.
Bitcoin ETF Issuers Already Advertising on Google
Google’s new rules took effect on January 29. According to the regulations, advertisers offering “Cryptocurrency Coin Trusts” and targeting receivers in the United States can advertise their products and services provided that they meet Google’s requirements.
Google announced changes to its cryptocurrencies and related products policy last December. The announcement notes that the ad giant will issue a warning at least seven days before it suspends any accounts that violate the rules.
Furthermore, the announcement features non-exhaustive lists of dos and don’ts, including a specification that all ads must comply with local laws and regulations in the target audience’s region or country. It states that cryptocurrency coin trusts that “allow investors to trade shares in trusts holding large pools of digital currency” must apply for certification. Also, the advertiser must be a licensed provider. Interestingly, the rules prohibit ads for initial coin offerings (ICOs), initial DEX offerings, DeFi trading protocols, or ads that prompt the purchase, sale, or trade of cryptocurrencies or related products.
All issuers seem to be in competition as they strive to draw attention to themselves instead of others. This competition began before the initial approval from the United States Securities and Exchange Commission (SEC) when the price wars began. Filings reveal that at 0.20 percent, the Bitwise Bitcoin ETP Trust (NYSE: BITB) has the lowest fee. It also grants a waiver lasting six months, or until the fund hits $1 billion. While several others have varying waiver details, the VanEck Bitcoin Trust (CBOE: HODL) has none.
Updated Fee war for the #Bitcoin ETF Race. Was missing Wisdomtree's waiver that was added this morning! Looking for potential approvals tomorrow and potential listings on Thursday pic.twitter.com/7WCTUO95nf
— James Seyffart (@JSeyff) January 9, 2024
At the moment, the ad spend for each issuer is uncertain as Google is not publicizing these figures. According to Google, advertisers bid to place ads via auction.
Meta Platforms to Follow Suit
According to reports, Meta Platforms is currently reviewing its advertising policies to allow issuers to promote spot Bitcoin ETFs in the US. In an X post, the President of ETF Store, Nate Geraci, hinted that Facebook and Instagram will likely join Google in accepting the ads.
On January 10, the SEC approved 11 spot Bitcoin ETFs after rejecting all proposals for more than a decade. The Commission eventually gave its green light a while after losing a court case to Grayscale Investments. The asset manager had sued the SEC for refusing its application, accusing the SEC of arbitrarily applying laws. The court ruled in Grayscale’s favor, which many observers concluded was a huge indicator that approval was only a matter of time.
The products have recorded healthy figures, with over $7 billion in inflows. Unfortunately, outflows from the Grayscale ETF have already crossed $5 billion. As of the end of January, the net inflows across all active ETFs were $1.5 billion.
