Bitwise Joins the Spot Bitcoin ETF Race with New DTCC Listing

Bitwise Asset Management has joined the list of companies aiming for a spot Bitcoin (BTC) Exchange Traded Fund (ETF) approval in the United States.

The firm’s ETF has been officially listed on the Depository Trust and Clearing Corporation (DTCC) under the ticker BITB, signaling a growing optimism within the sector.

Bitwise Optimistic Following Listing

Bitwise’s entry into this arena follows the steps of Fidelity, another prominent financial institution that had its spot Bitcoin ETF listed on the DTCC last week.

In anticipation of this potential milestone, Bitwise’s Chief Investment Officer, Matt Hougan, has revealed the company’s proactive stance. “We’re preparing as though there’s going to be a launch,” he stated, indicating the development of marketing, sales strategies, and regulatory engagements.

Hougan also mentioned that he has discussed the company’s application with regulators. He further noted that it is common for “all the firms” to have regular meetings with the SEC.

This development occurs amidst increasing anticipation within the financial community. Bloomberg analysts have projected a 90% likelihood of the U.S. Securities and Exchange Commission (SEC) greenlighting a spot BTC ETF by January 10.

Adding to this positive sentiment, Ryan Rasmussen, a senior crypto research analyst at Bitwise, predicts a bright future for Bitcoin. He anticipates BTC reaching new all-time highs in 2024, asserting that a spot Bitcoin ETF could become “the most successful ETF launch of all time.”

Invesco Adapts to Guidelines as BlackRock Revises ETF Structure

In related news, the industry is witnessing a shift toward the SEC’s preferences for ETF structures.

Bloomberg ETF analyst Eric Balchunas reported through a post on X that Invesco has aligned with the SEC’s advocacy for in-kind creations in ETFs, as evidenced by its updated S-1 submission.

Invesco is committing to cash creates only, as per their just-updated S-1. Pretty big clue that SEC is dug in on only letting cash create ETFs out in first run (which is what we hearing back channel as well). Still, many were waiting to see if BlackRock could sway SEC on in-kind https://t.co/l4DIu9G2Wh

— Eric Balchunas (@EricBalchunas) December 13, 2023

This move comes as other financial giants like BlackRock, Fidelity Investments, and Ark Invest initially resisted this approach.

BlackRock has also reportedly revised its spot Bitcoin ETF structure, allowing ‘authorized participants.’ Ideally, major Wall Street banks, such as Goldman Sachs and JPMorgan, would create new shares in the fund with cash.

This modification, pending approval, would enable these institutions to gain Bitcoin exposure without directly owning cryptocurrency. This model aims to increase investor protection and reduce transaction costs, aligning with the SEC’s critical requirements for ETF approval.