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⚡Spot Bitcoin ETF Now Listed on DTCC💡

Croxroad

14 Dec 2023 — 5 min read

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✔️ Bitcoin ETF Enters Mainstream Finance

Bitwise Asset Management has achieved a significant milestone by getting its spot Bitcoin ETF listed on the Depository Trust and Clearing Corporation (DTCC) under the ticker name $BITB. This is a positive development because it indicates a growing likelihood of the United States approving a spot Bitcoin ETF. Bitwise follows in the footsteps of Fidelity, whose spot Bitcoin ETF was listed on the DTCC just last week.

Even though the final approval for a spot Bitcoin ETF in the US is pending, Matt Hougan, Chief Investment Officer at Bitwise, expressed optimism by stating that the team is preparing for a potential launch. They are actively working on marketing, sales strategies, and communication plans while collaborating with regulators to move the process forward.

Hougan revealed that he has been in discussions with regulators and emphasised that regular meetings with the Securities and Exchange Commission (SEC) are standard practice for all firms involved. The competition for a spot Bitcoin ETF approval is intensifying, with Bloomberg analysts estimating a 90% chance of approval by January 10.

Bitwise is bullish about the future of Bitcoin, predicting that BTC could reach new heights in 2024. According to Ryan Rasmussen, a senior crypto research analyst at Bitwise, the approval of a spot Bitcoin ETF will be a groundbreaking event and could lead to BTC hitting $80,000 in 2024. This would represent an 87% increase from the current levels.

In addition to the potential ETF approval, Bitcoin is set to undergo its next halving cycle in April of the following year. Halving events are typically positive for the cryptocurrency market as they reduce the supply of Bitcoin. The combination of these factors, the halving, and the possibility of a spot Bitcoin ETF approval, could contribute to another bullish period for the cryptocurrency market.

🌍 Bitcoin Breaks Records Worldwide

Bitcoin has shown remarkable resilience in 2023, bouncing back from a low of around $16,800 to reach $42,875. This represents a substantial gain of over 153% year-to-date and 143% over the last 12 months, outperforming major tech companies. However, it's important to note that Bitcoin's current price is still 39% below its all-time high (ATH) against the U.S. dollar reached in November 2021.

Interestingly, while Bitcoin faces challenges in some regions, it continues to hit all-time highs in countries facing economic uncertainties and high inflation rates, including Argentina, Turkey, Egypt, Nigeria, Lebanon, and Pakistan. In these countries, Bitcoin has reached astronomical values when compared to their local currencies, reflecting the impact of inflation on their economies.

This surge in Bitcoin's value in these nations is attributed to the devaluation of their currencies due to high inflationary pressures. The International Monetary Fund (IMF) data reveals staggering annual inflation rates in some of these countries, with Zimbabwe, Venezuela, and Sudan experiencing some of the highest rates.

For citizens in these inflation-hit countries, Bitcoin has become a reliable store of value and a hedge against rapidly rising inflation. Despite the challenges, these nations, such as Nigeria and Argentina, have seen increased adoption of cryptocurrencies, ranking among the highest globally.

In Argentina, the recent presidential election has further fueled Bitcoin adoption, with the pro-Bitcoin candidate winning and implementing measures like a significant devaluation of the peso. The IMF endorsed these measures, considering them bold and likely to improve public finances.

Bitcoin's performance has stood out, especially when compared to tech stocks during the extended 2022 bear market. According to Pantera Capital, a leading crypto hedge fund, Bitcoin has outperformed most tech stocks, except for Meta, recording gains of over 162% year-to-date.

Several positive developments, including increased institutional adoption through spot Bitcoin ETFs from traditional finance giants like BlackRock and Fidelity, have contributed to Bitcoin's resurgence. Additionally, favourable regulatory rulings, such as the declaration that XRP is not a security and Grayscale's legal victory against the SEC, have created a positive regulatory landscape for cryptocurrencies in the U.S.

🧭 How Does Bitcoin Work?

Bitcoin isn't just one thing; it's like a trio of elements working together to create a decentralised payment system. Here's the breakdown:

1. The Bitcoin Network: This is like the big playground where all the action happens. It's a network of computers connected to each other, and these computers (or nodes) work together to make sure everything runs smoothly.

2. Bitcoin (BTC): Now, this is the currency itself. It's what you trade and use within the Bitcoin network. When people talk about buying or selling Bitcoin, they're talking about this digital currency.

3. The Bitcoin Blockchain: Imagine this as a giant, public ledger that keeps track of all the transactions made with Bitcoin. Every time someone sends or receives Bitcoin, it gets recorded on this ledger. But here's the cool part—this ledger isn't controlled by any single person or company. Instead, it's distributed across all the computers in the network. This is what we call the blockchain.

So, here's how it all works: people in the network, like you and me, can send Bitcoin directly to each other without needing a middleman. And to make sure everything is legit, we use the blockchain. This technology ensures that every transaction is verified, stored, and ordered in a way that can't be messed with. It's like having a shared document that automatically updates for everyone whenever someone makes a change.

So, when new transactions happen, they're added to this blockchain, and every computer in the network gets updated with the latest info. It's a bit like everyone having access to an online document that keeps track of who owes what to whom, and it updates in real-time. That's the magic of Bitcoin's decentralised system!