BlackRock’s Bitcoin ETF Disappears from DTCC Website
The value of Bitcoin (BTC) dropped over 3% after the ticker for BlackRock’s spot Bitcoin ETF, IBTC, disappeared from the Depository Trust & Clearing Corporation (DTCC) website. This removal came as a surprise since BlackRock was positioned for a potential launch, with seeding, ticker assignments, and DTCC listing already in place. The disappearance coincided with a surge in Bitcoin’s value, fueled by expectations of US regulators approving a Bitcoin ETF. However, the elimination of the ETF from the DTCC website suggests that approval may not be imminent. When approached for comment, BlackRock cited regulatory filing restrictions.
SEC’s Communication with BlackRock
Eric Balchunas, a Bloomberg analyst, believes that BlackRock may have received an indication of approval or impending approval from the SEC, as evidenced by their initial preparations for the ETF launch. However, it is speculated that the SEC may have intervened and instructed BlackRock to postpone the launch until it is just days away. The recent modification to the Registration Statement for the iShares Bitcoin Trust indicates that BlackRock could potentially be making Bitcoin purchases this month in preparation for its upcoming spot Bitcoin ETF.
SEC Yet to Approve Spot Bitcoin ETF
The SEC is currently evaluating Grayscale’s application for a spot Bitcoin ETF following a mandate by the US Court of Appeals for the D.C. Circuit. The commission faces the decision to either approve Grayscale’s ETF or provide new reasons for denial. Meanwhile, data from the Chicago Mercantile Exchange shows a significant increase in open interest in Bitcoin futures, indicating growing interest from institutional investors.
Hot Take: Uncertainty Surrounds BlackRock’s Bitcoin ETF Launch
The disappearance of BlackRock’s spot Bitcoin ETF from the DTCC website has raised uncertainty about the approval and launch of the product. While there were indications of significant preparations by BlackRock, including seeding and ticker assignments, the removal suggests a potential delay. The SEC’s communication with BlackRock remains unclear, leading to speculation about their involvement in the situation. In the meantime, Bitcoin’s value experienced a decline, highlighting the impact of regulatory developments on cryptocurrency markets. Investors and industry observers eagerly await further updates on the status of BlackRock’s Bitcoin ETF.
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