The world’s largest asset manager, BlackRock, and market maker Citadel Securities have reportedly backed a firm in launching a new national stock exchange in Texas. The Texas Stock Exchange (TXSE) has already secured approximately $120 million in funding and plans to file registration statements with the United States Securities and Exchange Commission (SEC) toward the end of 2024, according to a June 4 Wall Street Journal report.
TXSE: A New Hub for Crypto Companies?
The pro-crypto state’s stock exchange could serve as an alternative for crypto companies looking to go public. Currently, a handful of crypto firms are listed on the Nasdaq stock exchange, including:
- Coinbase: A leading cryptocurrency exchange
- Riot Platforms: A major Bitcoin mining firm
- Marathon Digital: Another significant player in the Bitcoin mining sector
Despite these listings, the 11 approved spot Bitcoin exchange-traded funds (ETFs) are listed on both the Nasdaq and the New York Stock Exchange (NYSE). It has been reported that the TXSE is particularly focused on securing ETF listings.
Recent Developments in Crypto ETFs
The news of TXSE’s launch comes only weeks after the SEC gave regulatory approval to spot Ether (ETH) ETFs in the United States. Bloomberg ETF analyst Eric Balchunas recently forecasted that spot Ether ETFs have a “legit possibility” of launching by the end of June.
| ETF Type | Approved Listings |
|---|---|
| Spot Bitcoin ETFs | Nasdaq, NYSE |
| Spot Ether ETFs | Expected by June |
A new stock exchange in Texas is positive news for investors looking to gain exposure to crypto. Increased competition from the TXSE could pressure the two major exchanges, the NYSE and the Nasdaq, leading to:
- Lower fees for companies: Making it more affordable for crypto firms, such as Bitcoin miners, to go public.
- Greater access for investors: More options to invest in crypto-related stocks and ETFs.
Bitcoin mining stocks tend to surge with positive news or anticipation in the crypto industry. For instance, approval of spot Bitcoin ETFs or the lead-up to the Bitcoin halving event often triggers significant price increases. On April 20, Cointelegraph reported that several Bitcoin mining firms on the Nasdaq stock exchange saw a noticeable 24-hour increase in share prices ahead of the Bitcoin halving.
The launch of the Texas Stock Exchange, backed by BlackRock and Citadel Securities, marks a significant development in the financial and crypto markets. This new exchange promises to provide a competitive alternative for crypto companies looking to go public, potentially driving down fees and increasing investment opportunities. As the TXSE moves forward with its plans, the crypto and financial sectors will be watching closely to see how it influences market dynamics and investor behavior.
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