Recently, the financial world has been keeping an eye on the competition surrounding Bitcoin ETF filings. Following BlackRock’s filing, a new Invesco Galaxy application has come into the picture.
Invesco Galaxy Spot Bitcoin ETF, with the ticker BTCO, is now listed on the Depository Trust and Clearing Corporation (DTCC) site, in a move that marks a step forward in the application process for these two asset managers.
This development closely follows the impact BlackRock’s request had on the cryptocurrency market. Initially, the inclusion of BlackRock’s application on the DTCC list boosted the price of Bitcoin, however, it was temporarily withdrawn, and then reappeared.
Now, both BlackRock and Invesco Galaxy’s applications are on the DTCC list. It is rumored that BlackRock’s temporary withdrawal was due to the excessive attention it attracted.
The Depository Trust & Clearing Corporation (DTCC) plays a crucial role in the ETF market in the United States
When an ETF is added to the DTCC list, this means that an intermediary bank has applied for a DTCC designation for that fund and can execute the transaction at an unspecified date in the future, once the Securities and Exchange Commission (SEC) SEC) approve the request.
However, it is important to note that being on the DTCC list does not guarantee regulatory approval.
A DTCC spokesperson explained, that it is standard practice to add securities to NSCC’s security eligibility file “In preparation for the launch of a new ETF to the market,” but this does not indicate the outcome of pending regulatory processes.
The filing for the Bitcoin ETF jointly managed by Invesco and Galaxy Digital was reactivated on June 21, in response to a wave of similar filings for Bitcoin ETF products.
This wave was triggered after investment giant BlackRock filed on June 15, generating significant interest in the cryptocurrency market.
The announcement of the inclusion of Invesco Galaxy’s application for a Bitcoin ETF on the DTCC list appears to have had an immediate impact on the price of Bitcoin.
The price of Bitcoin rose from around $34,300 to $35,000 in reaction to the announcement, and then retreat towards $34,100 dollars, on a Wednesday full of important news on the world macro-economy. It is important to note that cryptocurrency price movements are often volatile and can change quickly.
We recommend responsibly handling risk management in the face of capital exposures and not being influenced by FOMO in this situations.