The Texas Stock Exchange (TXSE) is set to shake up the U.S. financial landscape with significant backing from BlackRock, the world’s largest asset manager, and market maker Citadel Securities. This new national stock exchange has reportedly secured approximately $120 million in funding and is preparing to file registration statements with the United States Securities and Exchange Commission (SEC) by the end of 2024, according to a June 4 report by the Wall Street Journal.

TXSE aims to prioritize ETF listings, offering a more competitive alternative to the two major U.S. stock exchanges, Nasdaq and the New York Stock Exchange (NYSE). This development comes at a time when the pro-crypto state of Texas is increasingly becoming a hub for digital assets and blockchain technology.

Currently, a few prominent crypto firms, such as cryptocurrency exchange Coinbase and major Bitcoin mining companies like Riot Platforms and Marathon Digital, are listed on the Nasdaq. The 11 approved spot Bitcoin exchange-traded funds (ETFs) are also listed on both Nasdaq and NYSE. The addition of TXSE, focusing on ETF listings, provides another venue for these and other crypto firms to go public, potentially fostering greater market diversity and competition.

The introduction of a new stock exchange in Texas is seen as a boon for investors seeking crypto exposure. Increased competition among stock exchanges is expected to drive down fees for companies, facilitating easier public listings for crypto firms, including Bitcoin miners. Historically, Bitcoin mining stocks tend to rise on positive industry news, such as the approval of spot Bitcoin ETFs or in anticipation of the Bitcoin halving event.

The SEC’s recent approval of spot Ether ETFs has further bolstered the crypto landscape. Bloomberg ETF analyst Eric Balchunas predicted that spot Ether ETFs have a "legit possibility" of launching by the end of June, adding momentum to the growing acceptance of digital assets in mainstream finance.

The launch of TXSE, backed by industry giants BlackRock and Citadel, marks a significant milestone in the evolution of the U.S. stock exchange landscape. It not only underscores the growing integration of cryptocurrency within traditional financial systems but also promises to offer a competitive edge that could benefit a wide range of investors and companies in the burgeoning digital asset sector.