In a recent development, another proposed Spot Bitcoin ETF has been listed on the Depository Trust and Clearing Corporation’s (DTCC) website, becoming the second proposed Spot Bitcoin ETF to appear on the corporation’s website.
The Invesco Galaxy Bitcoin ETF, under the ticker ‘BTCO’, recently appeared on the DTCC website, joining BlackRock’s spot Bitcoin ETF, which goes under the ticker ‘IBTC’, as uncertainty around a possible approval of these funds continues to heighten.
Many had speculated that an approval was imminent when BlackRock’s IBTC was earlier listed. However, the optimism has cooled off following a recent revelation by a spokesperson for the financial services company. The representative clarified that the listing of these ETFs was simply “Standard Practice” and that it doesn’t indicate any potential approval by the SEC.
An ETF expert weighed in and stated that DTCC’s listing didn’t mean anything in the grand scheme of things regarding a possible approval of Bitcoin ETFs by the United States Securities and Exchange Commission (SEC). Going by this, the DTCC listing only suggests that these asset managers are preparing just in case they get approved by the SEC.
Related Post
Such preparations also include asset managers BlackRock and VanEck recently revealing their plans to begin seeding for their respective funds. While such a move doesn’t guarantee that the SEC is likely to approve these funds anytime soon, it shows the optimism of these firms that their Spot Bitcoin ETF will launch sooner or later.
In a post shared on his X (formerly Twitter) platform, Bloomberg analyst James Seyffart noted that the asset management firm Valkyrie had joined the “prospectus amendment train” with the latest filing of their revised Spot Bitcoin ETF prospectus. Valkyrie joins the likes of ARK Invest, BlackRock, Fidelity, and Bitwise, who have also filed amendments to their prospectus.
Seyffart happens to be one of those who believe that these amendments could mean something. ARK Invest was the first asset manager to amend its prospectus, which led Seyffart and fellow Bloomberg analyst Eric Balchunas to predict that the US Securities and Exchange Commission (SEC) could approve a fund as early as next year.
Meanwhile, it is worth mentioning that the SEC has so far not said anything regarding Grayscale’s application despite the Commission opting not to file an appeal. But that could change soon as ETF enthusiast and prominent financial lawyer Scott Johnsson said that the Commission is set to have a closed meeting on November 2; its first since the Grayscale deadline expired, and one of the agenda for the meeting includes resolving litigation claims.
The cryptocurrency market has been closely following the developments surrounding Spot Bitcoin ETFs as they are seen as a potential catalyst for increased institutional investment and mainstream adoption of Bitcoin. The approval of a Spot Bitcoin ETF would make it easier for institutional investors to gain exposure to Bitcoin without directly holding the cryptocurrency. This could lead to a significant influx of capital into the Bitcoin market and potentially drive the price higher.
However, it is important to note that the approval process for ETFs by the SEC is typically lengthy and complex. The SEC has previously expressed concerns about market manipulation and investor protection in the cryptocurrency market, which has been a major hurdle for the approval of Bitcoin ETFs.
Despite the challenges, market participants remain optimistic about the future of Bitcoin ETFs. The increasing number of asset managers filing for Spot Bitcoin ETFs and the growing interest from institutional investors indicate a growing acceptance and recognition of Bitcoin as a legitimate asset class.
In conclusion, the listing of another proposed Spot Bitcoin ETF on the DTCC website reflects the ongoing efforts by asset managers to prepare for the potential approval of these funds by the SEC. While the listings themselves do not guarantee approval, they demonstrate the optimism and belief in the future of Bitcoin ETFs. The cryptocurrency market eagerly awaits the SEC’s decision on Bitcoin ETFs, as it could have a significant impact on the adoption and investment landscape for Bitcoin.
