Bitcoin (BTC-USD) is surging, and Bitcoin prices rose as high as $35,000 earlier today, causing many crypto-related stocks to rally as well. Despite a small dip, as of 11:40 a.m. Eastern, the crypto was changing hands for $33,485, representing a gain of about 8% on the day. The rally came after investment manager BlackRock (NYSE:BLK) listed an application for a Bitcoin ETF on the website of the Depository Trust and Clearing Corporation (DTCC), while the latter company issued a Securities and Exchange Commission (SEC) filing that included details about the proposed exchange-traded fund (ETF).
In light of the latter developments, investors appear to believe that the launch of a Bitcoin ETF is imminent.
More About the Proposed Bitcoin ETF
BlackRock’s spot Bitcoin ETF will be known as the iShares Bitcoin Trust and trade under the symbol IBTC, according to an SEC filing issued by the DTCC. The DTCC “processes trillions of dollars in securities transactions” and approves ETFs.
The ETF is slated to trade on the Nasdaq exchange.
Bloomberg analyst Eric Balchunas wrote: “This is pretty much checking every box that you need to check before you launch an ETF.” He noted that IBTC “is [the] first spot ETF listed on DTCC.”
The SEC had been opposed to allowing a Bitcoin ETF to be launched. However, the agency appears to have relented after a federal appeals court ruled in favor of another company that was seeking to launch a Bitcoin ETF despite the agency’s objections.
According to Balchunas, BlackRock is carrying out steps that tend to happen just before an ETF is launched.
Other Crypto-Related Names
Among the multiple other companies looking to launch a crypto ETF are Cathie Wood’s investment firm, Ark Invest and Fidelity, the huge and well-known investment manager. If IBTC is approved, other ETFs that seek to track Bitcoin prices would likely quickly follow suit.
Crypto-related stocks that are jumping this morning include MicroStrategy (NASDAQ:MSTR), which is climbing 12% to $423, Marathon Digital Holdings (NASDAQ:MARA), advancing 17% to $10.25.
Finally, Riot Platforms (NASDAQ:RIOT) is climbing 13% to $10.90.
On the date of publication, Larry Ramer did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
