Invesco Galaxy Bitcoin ETF Listed on DTCC Website
The ticket for Invesco Galaxy’s spot Bitcoin ETF (BTCO) is now visible on the Depository Trust & Clearing Corp. (DTCC) website, according to crypto observers who noticed the new listing. However, it is unclear when exactly this happened.
More ETFs Coming?
While the listing on DTCC is a positive sign, it does not guarantee approval from the U.S. Securities and Exchange Commission (SEC) for a spot crypto product. A spokesperson for DTCC emphasized that appearing on the list does not indicate the outcome of regulatory or approval processes.
Despite this, some financial experts believe that DTCC adds securities to its list in preparation for their launch. This has sparked optimism that future approval of a spot Bitcoin ETF is imminent.
Hype and Institutional Interest
The hype surrounding spot Bitcoin ETFs began in June after BlackRock filed for one. This news caused Bitcoin to increase in value, reaching over $30,000 by the end of the month. While individuals can easily buy Bitcoin, large investors have limited options.
In addition to BlackRock, other institutions such as Invesco Galaxy, Fidelity Investments, WisdomTree, Valkyrie Investments, VanEck, ProShares, Bitwise Asset Management, and ARK Invest have joined the wave of filing for spot Bitcoin ETFs.
In October, news that BlackRock’s spot Bitcoin ETF was listed on DTCC led to an increase in Bitcoin’s price to over $34,000. The cryptocurrency closed “Uptober” with a 22.83% gain over a month.
SEC Skepticism and Market Reaction
In September 2021, Invesco Galaxy applied for the launch of its spot Bitcoin ETF, but the SEC rejected the filing due to concerns about market manipulation and investor protection. The SEC has not yet approved any spot Bitcoin ETF.
Bitcoin did not show any significant changes after the news of Invesco Galaxy’s listing on DTCC. The market is likely waiting for the SEC’s final decision, which is expected in the coming months.
According to JPMorgan, the SEC is likely to approve a spot Bitcoin ETF before January 10, 2024. However, industry analysts are more cautious and believe that the SEC may take longer to make a decision.
Spot Crypto ETF Debut on Wall Street Next Year?
If a spot Bitcoin ETF receives approval, it is likely that a spot Ethereum ETF will follow soon after. ARK Invest and Swiss ETP issuer 21Shares filed for a spot Ethereum ETF in September. Other major applicants include Invesco Galaxy, Fidelity, BlackRock, Global X, ProShares, Valkyrie Investments, VanEck, and WisdomTree.
Grayscale has also filed an application with the SEC to convert its Ethereum Trust into a spot Ethereum ETF. The SEC is reviewing this proposal following a court ruling in favor of Grayscale.
While Ethereum futures ETFs debuted in October 2023 after SEC approval, trading volume fell short of expectations. This may be because investors are anticipating spot Ethereum offerings.
Hot Take: Positive Impact on Crypto Market
The approval of spot crypto ETFs would bring increased institutional awareness, interest, and liquidity to Bitcoin and Ethereum. Overall, it would be a positive development for the entire crypto market. Cryptocurrencies are currently trading up, indicating the start of a new bull market.
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