The cryptocurrency market experienced another weekend rally, driven by growing investor speculation about the imminent approval of a Bitcoin exchange-traded fund (ETF). While a Bitcoin ETF has yet to receive regulatory approval, investors are positioning themselves for the potential market-shifting event that such an approval could trigger.
A notable moment of excitement occurred when rumors briefly circulated last week, suggesting that BlackRock had gained approval for a Bitcoin ETF. This speculative frenzy led to a surge in token values, although the boost proved to be more a result of market anticipation rather than genuine Bitcoin demand.
In an October 23 Twitter thread, Bloomberg ETF analyst Eric Balchunas highlighted the significance of BlackRock’s spot Bitcoin ETF listing on the DTCC. The ETF, possibly bearing the ticker symbol IBTC, is earmarked for listing on the Nasdaq stock exchange. Balchunas noted that BlackRock’s proactive approach in tackling the logistics required before ETF launch indicates a growing confidence that regulatory approval is imminent.
The iShares Bitcoin Trust has been listed on the DTCC (Depository Trust & Clearing Corporation, which clears NASDAQ trades). And the ticker will be $IBTC. Again all part of the process of bringing ETF to market.. h/t @martypartymusic pic.twitter.com/8PQP3h2yW0
— Eric Balchunas (@EricBalchunas) October 23, 2023
Should BlackRock’s application receive the green light, it could serve as a catalyst for a wave of spot crypto ETF filings that are currently under review by the U.S. Securities and Exchange Commission (SEC). Notable players like ARK Investment, Fidelity, and Valkyrie have applications awaiting approval. To date, the SEC has not approved any spot Bitcoin or Ether ETF, although it began permitting investment vehicles tied to Bitcoin futures in October 2021.
The recent DTCC listing for BTCC follows a U.S. appellate court’s mandate that enforces a decision from August 29, compelling the SEC to review a spot Bitcoin ETF application submitted by Grayscale Investments. On October 19, Grayscale submitted a registration statement to the SEC to list shares of its Bitcoin trust on the New York Stock Exchange Arca under the ticker symbol GBTC.
The mounting anticipation surrounding Bitcoin ETF approval suggests that the cryptocurrency market is on the verge of a significant transformation, with institutional investors keeping a watchful eye on the evolving regulatory landscape.
