Bitwise’s Bitcoin-Spot ETF Listed on DTCC, Eyes SEC Approval
Bitwise Asset Management’s exchange-traded Bitcoin-spot fund (ETF) has recently appeared on the Depository Trust & Clearing Corporation (DTCC) Active and Advance List. This listing is a significant step towards obtaining regulatory approval in the US. The DTCC listing includes various Bitcoin-spot ETFs, signaling encouragement for the cryptocurrency sector. Notably, prominent players such as Fidelity and BlackRock, whose exchange-traded funds are also included in the list, indicate the growing interest of institutional investors in actively participating in Bitcoin.
Bitwise’s reapplication for a Bitcoin ETF on June 16 reflects the company’s proactive approach. This move followed the SEC’s rejection of the company’s initial application a year ago due to concerns regarding cooperative oversight and investor protection. The renewed application aligns with BlackRock’s application, demonstrating the collective determination of key players to navigate the regulatory process and launch a spot ETF.
Furthermore, the entry of BlackRock, the world’s largest asset management company, into this space underscores the increasing willingness of institutional investors to engage with cryptocurrencies.
While the DTCC listing does not guarantee SEC approval, the positive conversations with the SEC continue. Matt Hougan, Chief Investment Officer of Bitwise Asset Management, predicts that Bitcoin prices could rise as investors seek to hedge against inflation.
The market’s response to the anticipated approval of a Bitcoin ETF has already triggered an upward trend. With a 4% increase in recent days, Bitcoin is now trading at $42,837.41, and the positive sentiment hints at reaching $50,000 amid the expected Santa Claus rally.
Market analysts at Matrixport anticipate a positive rally, with Bitcoin expected to reach $45,000 by year-end and possibly even $60,000 before the next halving. Additionally, Bitwise predicts that Bitcoin could reach a new all-time high of nearly $80,000 in 2024 if Bitcoin ETFs prove successful.
Despite these optimistic forecasts, caution is advised due to the unpredictable nature of cryptocurrency markets. Traders should exercise vigilance in the face of unforeseen circumstances.
Ryan Rasmussen, senior crypto research analyst at Bitwise Asset Management, cites the main reasons for Bitcoin’s surge. Anticipating the launch of a spot Bitcoin ETF in early 2024 and the planned halving of the new Bitcoin supply by the end of April, analysts expect Bitcoin to reach unprecedented heights. According to Bitwise’s optimistic forecast, all Bitcoin-spot ETFs could start as the most successful ETFs of all time and take a significant portion of the $7.2 trillion US ETF market.
In conclusion, the listing of Bitwise’s Bitcoin-spot ETF on the DTCC represents a significant milestone in the journey towards regulatory approval. While the outcome remains uncertain, the market’s positive response signals growing optimism around the potential for a Bitcoin ETF approval and its impact on the cryptocurrency market.
