In a significant development, Invesco and Galaxy’s joint Bitcoin ETF, with the ticker BTCO, has made its appearance on the Depository Trust and Clearing Corporation’s [DTCC] website, joining the ranks of other leading Assets Under Management [AUMs] spot ETFs like BlackRock, Valkyrie, and Bitwise. The updated list, dated October 31, has caught the attention of investors, especially since BlackRock’s iShares Bitcoin ETF [IBTC] reappeared on the list after a brief disappearance. Investors have been closely monitoring the ETF list on the clearing website, anticipating the approval of these cryptocurrency investment products.
While the inclusion of BTCO on the DTCC list is a step forward in the application process for Invesco and Galaxy, it does not guarantee approval. The DTCC clarified that the list serves as an eligibility file, encompassing both active and potential ETFs. BlackRock’s iShares Bitcoin Trust ETF was added in August as part of the standard preparation for the launch of a new ETF. A spokesperson for the DTCC emphasized that being listed does not indicate the outcome of ongoing regulatory or approval processes.
The DTCC plays a pivotal role in the American ETF market. When an ETF is added to the DTCC list, it signifies that an intermediary bank has sought a DTCC designation for the ETF fund, enabling potential transactions at an unspecified future date, subject to the Securities and Exchange Commission [SEC] approval of the DTCC.
Bitcoin ETFs Contenders
Invesco, a prominent investment management company with $1.4 trillion in assets under management, initially filed for a Bitcoin ETF in the fall of 2021. Later, in June of this year, it refiled the application in partnership with Galaxy Digital. This move came shortly after BlackRock, a traditional finance giant, filed for a spot ETF just a week earlier, intensifying the competition in the cryptocurrency ETF space.
Meanwhile, VanEck, another key player in the race to launch a Bitcoin Exchange-Traded Fund, has submitted a revised application to the United States SEC. This updated application for a spot BTC ETF includes essential details about a significant financial transaction involving a block of 50,000 shares of the proposed ETF. Notably, a seed capital investor utilized Bitcoin as the currency for this purchase, highlighting the growing integration of cryptocurrencies into traditional financial markets. Investors continue to watch these developments closely, anticipating the evolution of the cryptocurrency investment landscape.