Invesco Galaxy’s spot Bitcoin ETF (BTCO) ticket is now on display on the website of the Depository Trust & Clearing Corp. (DTCC). The discovery came after several crypto observers noticed the new listing on the DTCC site. However, it remains unclear when it exactly happened.
More ETFs Coming?
While DTCC listing is a positive indicator, it does not necessarily guarantee that the U.S. Securities and Exchange Commission (SEC) would approve a spot crypto product. “Appearing on the list is not indicative of an outcome for any outstanding regulatory or other approval processes,” a DTCC spokesperson emphasized.
However, some financial experts noted that DTCC typically adds securities to its list in preparation for their launch. Therefore, the listing has warmed up the optimism that future approval is imminent.
The hype surrounding spot Bitcoin ETF started building up in June this year after BlackRock’s filing news broke out. Bitcoin reacted with an uptick, surpassing $30,000 by the end of June. While many people can buy Bitcoin, large investors have limited options.
After BlackRock, several institutions also flocked into the wave, including Invesco Galaxy, Fidelity Investments, WisdomTree, Valkyrie Investments, VanEck, ProShares, Bitwise Asset Management, and ARK Invest, among others.
Earlier in October, news that the BlackRock spot Bitcoin ETF was listed on DTCC sent Bitcoin to over $34,000. The flagship cryptocurrency closed “Uptober” at $34,656, up to 22.83% over a month.
Invesco Galaxy first applied for the launch of its spot Bitcoin ETF in September 2021. However, the U.S. Securities and Exchange Commission (SEC) rejected the company’s filing.
The SEC remains skeptical about the spot crypto offering and thus has yet to approve any spot Bitcoin ETF. The federal agency has repeatedly cited concerns about market manipulation and investor protection as reasons for its rejection.
Bitcoin did not show any change after news of Invesco Galaxy’s spot Bitcoin ETF listed on DTCC. Perhaps the market is saving the hype for the SEC’s final decision, slated for the next few months.
According to a report by JPMorgan, the SEC is likely to approve a spot Bitcoin ETF before January 10, 2024, which is the final deadline for the Ark 21Shares applications. Industry analysts are more cautious and believe that the SEC could take longer to make a decision.
The SEC has been hard on all things crypto – so we just don’t know if ETFs are coming or not.
Spot Crypto ETF Debut on Wall Street Next Year?
Spot Ethereum ETFs are also garnering widespread attention, and if regulators green-light a spot Bitcoin ETF, approval of a spot Ethereum ETF is likely to follow soon after.
In September, ARK Invest, the leading investment management company led by Cathie Wood, and Swiss ETP issuer 21Shares, filed for a spot Ethereum ETF with the SEC.
In addition to ARK Invest and 21Shares, Invesco Galaxy, Fidelity, BlackRock, Global X, ProShares, Valkyrie Investments, VanEck, and WisdomTree are among the major applicants.
Grayscale has recently filed an application with the SEC in request to convert the Grayscale Ethereum Trust (ETHE) into a spot Ethereum ETF. The SEC is reportedly reviewing Grayscale’s proposal to convert the Grayscale Bitcoin Trust (GBTC) to a spot Ethereum ETF following the court ruling in favor of Grayscale.
A number of Ethereum futures ETFs debuted in October 2023 after SEC approval, but trading volume fell short of expectations. Bloomberg Intelligence ETF analyst Eric Balchunas suggested that this may be because investors are expecting spot Ethereum offerings.
The approval of spot crypto ETFs would likely lead to increased institutional awareness, interest, and liquidity in Bitcoin and Ethereum. Overall, it will be a positive development for the whole crypto market. Regardless, cryptos are trading up, and the new bull market is likely starting.
