• Fidelity Investments’ spot Bitcoin ETF has been listed on the DTCC, signaling potential SEC approval for the first spot Bitcoin ETF in the U.S.

• The listing has boosted market optimism, with predictions of a significant Bitcoin value increase, but faces skepticism from some financial leaders.

Fidelity Investments’ spot Bitcoin exchange-traded fund (ETF) has now been listed on the active and pre-launch list of the Depository Trust & Clearing Corporation (DTCC). This development marks a pivotal moment for Fidelity’s quest to secure approval for the first spot Bitcoin ETF in the United States.

The Wise Origin Bitcoin FD SHS, the official name of Fidelity’s spot Bitcoin ETF, has been listed on the DTCC website. Market analysts view this listing as a positive sign that the U.S. Securities and Exchange Commission (SEC) will soon approve it. Investors have long anticipated the SEC’s approval of a spot Bitcoin ETF, and many consider it a significant milestone in integrating cryptocurrency investments into traditional financial markets. 

Jurrien Timmer, director of Global Macro at Fidelity, has ventured to estimate that the value of Bitcoin may surpass $1 billion by 2038. Timmer predicts that Bitcoin will evolve into an inflation hedge akin to gold, a perspective reinforced by Bitcoin’s strong performance during the fiscal and monetary stimulus in 2020, triggered by rising inflation.

Timmer also emphasizes how much better Bitcoin’s risk-to-return ratio is than that of more conventional assets like gold and the S&P 500. He contends that even a tiny amount of Bitcoin could greatly impact the performance of investment portfolios.

Contrasting Views in the Financial World

Some are against the way cryptocurrencies are rapidly evolving. In an interview with CNBC this week, U.S. Senator Elizabeth Warren attacked the digital asset class, calling it a “new threat.” She expressed concern about the use of cryptocurrencies for illicit purposes, such as the financing of terrorism and the trafficking of drugs. Warren’s remarks confirm worries that North Korea is financing its nuclear weapons program with cryptocurrencies.

Jamie Dimon, the CEO of JPMorgan Chase, also voiced concerns over cryptocurrency. Citing the industry’s widespread usage in illegal operations, including money laundering and tax evasion, Dimon declared that if he were in an authority position, he would shut it down. On the other hand, the cryptocurrency community disputes these ideas, claiming that a very small portion of cryptocurrency transactions are used for illegal activities—a number far lower than that of traditional banking systems.

The Market’s Forward Momentum

The announcement of the ETF’s listing has bolstered an optimistic attitude among investors, rippling across the bitcoin market. An indicator of market emotion, the Bitcoin Fear and Greed Index, has crossed  “extreme greed.” This change communicates caution as well as a heightened degree of investor optimism, raising the possibility of a market correction before more upward momentum.

Nonetheless, traders should maintain their vigilance given the market’s volatility and unpredictability. At present, Bitcoin trades at $43,440 with a 24-hour increase of 12.96%, showing a slight increase in trading volume of 12.1% over the last 24 hours.