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⚡BlackRock's ETF Hits Nasdaq🎯

Croxroad

24 Oct 2023 — 5 min read

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🌙 BlackRock's Bitcoin ETF Soars 13% on Nasdaq Debut

In a recent development, BlackRock's proposed iShares spot Bitcoin exchange-traded fund (ETF) has been officially listed on the Depository Trust & Clearing Corporation (DTCC). This move is seen as a promising sign that the United States Securities and Exchange Commission (SEC) may grant approval for the ETF in the near future. Eric Balchunas, an ETF analyst at Bloomberg, explained in a Twitter thread that this listing on DTCC is a standard part of the process when preparing to launch an ETF. BlackRock's ETF, which goes by the ticker symbol IBTC, is intended for possible listing on the Nasdaq stock exchange. Balchunas noted that this is the first spot ETF listed on DTCC, and it indicates BlackRock's leadership in addressing the logistical aspects necessary for an ETF launch. Overall, this development strongly suggests that SEC approval for the ETF is on the horizon.

Eric Balchunas raised the intriguing possibility that BlackRock may have received a green light from the SEC, or at least, they're getting everything ready in anticipation of such approval. According to the timeline, the SEC has until January 10, 2024, to make a final decision regarding the ETF. If BlackRock's application gets the nod, it could set a precedent, potentially prompting the SEC to review other spot ETF applications from firms like ARK Investment, Fidelity, and Valkyrie, which are currently under review. It's worth noting that the SEC has previously not approved any spot Bitcoin or Ethereum ETF applications for listing on U.S. exchanges but started allowing investment products tied to Bitcoin futures in October 2021. This news comes in the wake of a U.S. appellate court mandate requiring the SEC to review Grayscale Investments' spot Bitcoin ETF application, signalling potential developments in this space. Grayscale submitted their application to list shares of their Bitcoin trust on the New York Stock Exchange Arca with the ticker symbol GBTC on October 19.

The recent developments surrounding the BlackRock's Bitcoin ETF and the potential opening of the spot ETF floodgates have notably influenced the market. In the last 24 hours, Bitcoin's value surged by a substantial 13%, demonstrating how market sentiment and investor confidence can be strongly swayed by regulatory advancements and institutional involvement. The prospect of a regulated and easily accessible Bitcoin investment vehicle has brought a renewed sense of optimism to the Bitcoin community, contributing to the significant price upswing.

💰 US Dollar Edges Lower

On Tuesday, the U.S. dollar saw a slight decline against a range of other currencies, mainly due to a drop in Treasury yields, as investors awaited crucial U.S. economic data, leading up to the upcoming Federal Reserve monetary policy meeting. The dollar index stood at around 105.57, marking a decrease of more than 0.5% from the previous session as U.S. Treasury yields took a tumble. Last week, the dollar had gained some strength when Fed Chair Jerome Powell hinted at the possibility of tighter financial conditions, propelling the benchmark 10-year yield to its highest level since July 2007. Meanwhile, Bitcoin garnered considerable attention in the market, surging amid speculation that the United States might soon approve a Bitcoin exchange-traded fund. As the week progresses, all eyes are now on the forthcoming U.S. economic data releases, particularly the flash purchasing managers' index (PMI) due later on Tuesday and the gross domestic product (GDP) report expected on Thursday, which could significantly influence market expectations, as explained by Matt Simpson, a senior market analyst at City Index.

The upcoming U.S. economic data releases carry significant weight as they could sway the direction of the dollar. Matt Simpson, a senior market analyst at City Index, noted that depending on the data trends, we might witness either a robust rally for the dollar or a decline, and this becomes particularly crucial as the Fed enters a blackout period before its policy meeting, restricting public communications from central bank officials. The Fed is widely anticipated to maintain its current interest rates at the meeting next week. In a parallel context, the European Central Bank is expected to keep its interest rates unchanged at its Thursday meeting, following a 25 basis point increase in its key interest rates in September.

The euro held steady at $1.0665, maintaining its gains against the dollar from Monday. On the other hand, the dollar's retreat provided some relief for the struggling yen, which had touched the critical 150-level both on Friday and Monday, ultimately stabilising against the greenback at 149.77. Traders are closely watching the 150 threshold, as it could prompt intervention from Japanese authorities in the currency market. However, strong data from the United States this week has the potential to push the yen back towards the danger zone. According to Kyle Rodda, a senior financial market analyst at Capital.com, the yen's sensitivity to robust U.S. data, especially if it leads to Treasuries surpassing a critical resistance level of around 5%, is something to watch closely.Bitcoin experienced a significant surge, jumping as much as 14% to reach a 2.5-year high at $34,283.

Get ready for an eye-opening read with our upcoming article, "The Fiat Scam: The Legal Ponzi Scheme That Central Banks Carry Out." This thought-provoking piece will take you on a journey into the world of central banks and their monetary policies, challenging the conventional wisdom surrounding fiat currency. It's a compelling exploration of the global financial system and its potential impact on your life and finances. So, stay tuned and eagerly await the release of this enlightening article, as it's bound to spark intriguing conversations and provide a fresh perspective on the financial world.

🙃 Tweezer Bottom

The Tweezer Bottom candlestick pattern is a promising sign for traders because it marks a change in the market's direction, particularly during a downward trend. This pattern involves two candles: first, a bearish one, which might seem like the prevailing downtrend continues. However, the next day, a bullish candle forms, and its low matches or nearly matches the low of the previous day's bearish candle. This near-identical low between the two candles signifies a robust support level, hinting that the downtrend could shift into an uptrend. As a result, bullish sentiment gains momentum, and the price begins to move upward. The bullish reversal is confirmed when the bullish candle forms on the following day, providing traders with a bullish signal and a potential trend reversal.