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June 21, 2023 by Lipika Deka
Bitcoin’s total market cap crossed above 50% yesterday, June 19, for the first time in months, data from Tradingview showed. It has retained its market dominance, thanks to a spurt of ETFs filed by some of the biggest fintech powerhouses.
The latest to jump on the bandwagon is $1.5 trillion asset manager Invesco which dropped its 19b-4 application for the second time after a similar filing back in the fall of 2021.
Bitcoin ETFs Fuel BTC Market Cap Dominance 3
The 19b-4 document requested that the US regulator the Securities and Exchange Commission [SEC] approve the listing of its “Invesco Galaxy Bitcoin ETF” product on the Cboe BZX platform.
A spot Bitcoin ETF, according to the petition, employs “professional custodians and other service providers,” which lessens the need for investors to rely on “loosely regulated offshore vehicles” and, as a result, enables them to more easily “protect their principal investments in BTC.”
Two years ago, Invesco withdrew its application to the SEC for a Bitcoin futures-based ETF in order to give investors better investing options than only a 100% BTC futures ETF.
However, more businesses are rushing in after investing juggernaut BlackRock announced that it would file a similar application for its own Bitcoin ETF on June 15.
Besides Invesco, New York-based asset management fund WisdomTree became the latest entrant among investment firms to submit a new filing for a spot BTC ETF.
WisdomTree asked the SEC in a June 21 filing for permission to list its “WisdomTree Bitcoin Trust” on the Cboe BZX Exchange under the ticker “BTCW.”
The files have sparked great interest in the crypto community, with many speculating on the effects on the market.
Bitcoin Rise Above $28k
These moves have reportedly boosted investors’ confidence upon announcement, causing BTC’s price to surge above $28,000 since last month.
A Bitcoin ETF is frequently viewed favorably since it gives cryptocurrency investors a simple, safe, and regulated option to invest in BTC and diversify their portfolios.
Moreover, BTC ETF will also probably draw more institutional investors who were previously reluctant to engage in cryptocurrencies due to custody and regulatory issues.
Furthermore, news that Fidelity Investments, a global leader in asset management with assets worth $4.5 trillion, is also applying for a regulatory license to offer cryptocurrency custody services has added to the frenzy surrounding the Bitcoin ETF.
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