Investment firm BlackRock is approaching a major shift in the cryptocurrency market. Its proposed Bitcoin ETF has been listed by the Depository Trust & Clearing Corporation (DTCC), which may indicate an impending approval by the U.S. Securities and Exchange Commission (SEC). Is this the beginning of a new era for investors on the Nasdaq exchange?
When we talk about investing in cryptocurrencies, we usually think about directly purchasing Bitcoin or other digital currencies. However, the financial world is looking for other ways to engage in this rapidly evolving sector. One such method is ETFs, or exchange-traded funds. And BlackRock, one of the world’s leading investment firms, has decided to enter this market with a Bitcoin-based ETF proposal.
The fact that the company’s proposal has been listed by the Depository Trust & Clearing Corporation (DTCC) is significant. It suggests a probable approval by the U.S. Securities and Exchange Commission. Of course, the listing itself does not guarantee automatic approval, but it is an important step in the process.
Eric Balchunas, an ETF analyst at Bloomberg, points out that BlackRock’s listing on the DTCC is part of the process of introducing crypto ETFs to the market. He also adds that this is the first ETF of this type to be listed by the DTCC. Importantly, Balchunas notes that BlackRock plays a crucial role in processes that typically occur just before the official launch of a product. This may suggest that the company has already received the “green light” from the SEC or at least assumes it will.
It’s worth noting that by January 10, 2024, the SEC must make a final decision on accepting or rejecting BlackRock’s ETF proposal. If the decision is positive, it could pave the way for many other crypto ETF proposals currently under SEC review, including those from companies such as ARK Investment, Fidelity, and Valkyrie.
To date, the SEC has not approved any crypto ETF proposals based on Bitcoin or Ethereum on the U.S. exchange. However, it began allowing products based on Bitcoin futures contracts to be traded in October 2021.
Another significant moment for the market was the appellate court mandate in the U.S., which forced the SEC to reconsider Grayscale Investments’ Bitcoin ETF application. Grayscale submitted an application to register its product with the SEC, hoping to list on the New York Stock Exchange Arca.
Will BlackRock open a new chapter for cryptocurrency investments on global exchanges? Everyone is eagerly awaiting the SEC’s decision. One thing is certain – crypto markets continue to evolve, offering investors ever-new opportunities.
Photo by Andy Hermawan on Unsplash
