By
Steve Muchoki
April 29th, 2024
BlackRock’s iShares Bitcoin Trust gets listed on the Depository Trust & Clearing Corporation (DTCC), however, analyst predict all approvals to happen at once.
As the crypto community gears up for the arrival of the first spot Bitcoin ETF in the coming months, analysts have been sharing interesting predictions ahead. Expert in crypto ETFs Stuart Barton, the Chief Investment Officer of Volatility Shares, anticipates that all spot Bitcoin exchange-traded fund (ETF) applications submitted to the US Securities and Exchange Commission (SEC) might be approved simultaneously.
Notably, Barton’s company, Volatility Shares, achieved a significant milestone by launching the first leveraged crypto ETF in the US, the 2x Bitcoin Strategy ETF (BITX), in June. Additionally, Volatility Shares was the first to apply for an ether (ETH) futures-based ETF. Despite the SEC’s lack of approval for prior applicants in this space, other companies followed Volatility Shares in pursuing ether futures ETFs.
But despite the SEC approval, Barton’s team didn’t proceed with launching the Ether ETF. In an interview with CoinDesk, he said:
“We applied first but didn’t get the first mover advantage when all applications were approved in one go. This is a precedent-setting event that could be replicated by the SEC in its considerations of spot-bitcoin ETFs.”
Considering the sluggish beginning for ether ETFs, with initial trading volumes of less than $2 million and sustained poor liquidity in the following days, Barton and his team are contemplating potential changes to their product.
We have the flexibility to launch our product at any time, but currently, we’re taking the opportunity to understand the reasons behind the relatively low popularity of ether ETFs. It’s puzzling why these ETFs for ether are significantly less popular compared to Bitcoin, which saw a billion dollars in two days after launch, added Barton.
The Rush for Spot Bitcoin ETF
Bloomberg Intelligence analysts and Cathie Wood from ARK Investment Management share Barton’s perspective that all applications for spot Bitcoin ETFs might receive simultaneous approval. Barton’s insight is informed not only by his experience with the ether ETF application but also by his belief that approving all ether ETFs at once was a strategic move by the SEC to pass the public’s litmus test without facing legal challenges. He anticipates a similar approach for spot Bitcoin ETFs.
The latest news coincides with the listing of BlackRock’s iShares Bitcoin Trust on the Depository Trust & Clearing Corporation (DTCC). Furthermore, the asset management giant intends to provide initial investments for its iShares Bitcoin ETF by the end of this month. These moves collectively signify significant progress towards the eventual listing of the first US spot Bitcoin ETF in the upcoming months.
The iShares Bitcoin Trust has been listed on the DTCC (Depository Trust & Clearing Corporation, which clears NASDAQ trades). And the ticker will be $IBTC. Again all part of the process of bringing ETF to market.. h/t @martypartymusic pic.twitter.com/8PQP3h2yW0
— Eric Balchunas (@EricBalchunas) October 23, 2023
Bitcoin’s surge beyond a crucial resistance level has resulted in more than $178 million in losses for bearish traders within the last 24 hours. Among the $400 million worth of cryptocurrency liquidations on Monday, futures linked to Bitcoin represented nearly 50%. While ether futures were associated with only $50 million in liquidations from both long and short positions.