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Crucial Move for BlackRock's iShares Spot Bitcoin ETF
BlackRock's iShares spot Bitcoin exchange-traded fund (ETF) is making significant progress, with its recent listing on the Depository Trust & Clearing Corporation (DTCC). This development could indicate that the United States Securities and Exchange Commission (SEC) is moving closer to granting approval for the crypto ETF.
Eric Balchunas, an ETF analyst at Bloomberg, expressed that the DTCC listing is a vital part of the process for introducing a crypto ETF to the market. BlackRock's iShares spot Bitcoin ETF is assigned the ticker symbol IBTC, as it prepares for a potential listing on the Nasdaq stock exchange. The application to list and trade the ETF was submitted in June.
The iShares Bitcoin Trust has been listed on the DTCC (Depository Trust & Clearing Corporation, which clears NASDAQ trades). And the ticker will be $IBTC. Again all part of the process of bringing ETF to market.. h/t @martypartymusic pic.twitter.com/8PQP3h2yW0
— Eric Balchunas (@EricBalchunas) October 23, 2023
Balchunas noted that this is the first spot ETF to be listed on DTCC, setting it apart from others in this category. He added that BlackRock is taking a leading role in managing logistics such as seeding, tickers, and DTCC listings, which usually occur just before the launch of an ETF. Balchunas suggests that this move implies that BlackRock may already have received indications from the SEC regarding an imminent approval.
Based on the application date, the SEC has until January 10, 2024, to make a final decision on whether to approve or deny BlackRock's ETF application.
Should BlackRock's application receive approval, it could open the door for several other spot crypto ETF filings currently under SEC review, including proposals from ARK Investment, Fidelity, and Valkyrie. The SEC previously allowed investment products tied to Bitcoin futures in October 2021 but has not yet approved any spot Bitcoin or Ether ETF applications for listing on U.S. exchanges.
The recent listing of BTCC follows an appellate court's mandate, which enforced a previous decision requiring the SEC to review Grayscale Investments' application for a spot Bitcoin ETF. Grayscale submitted a registration statement to the SEC for the listing of its Bitcoin trust on the New York Stock Exchange Arca under the ticker symbol GBTC on October 19.
