The DTCC Removes BlackRock’s Bitcoin ETF from its List
The Depository Trust and Clearing Corporation (DTCC) has removed BlackRock’s Bitcoin ETF, iBTC, from its ETF list after adding it just a day earlier. The news of the removal caused a 3% drop in Bitcoin’s price, falling from $34,527 to $33,432 within 30 minutes. Bloomberg ETF analyst James Seyffart speculated that the Securities and Exchange Commission (SEC) may have influenced the decision. The DTCC did not provide an immediate comment on the matter, while BlackRock declined to comment due to SEC filing restrictions. Eric Balchunas of Bloomberg suggested that BlackRock may be waiting until they are closer to launching the ETF before being listed on the DTCC.
DTCC Listing Standard Procedure for ETFs
The DTCC is responsible for settlement and clearing services in financial markets. According to Balchunas, being listed on the DTCC is a standard procedure when bringing an ETF to market, usually occurring within a week of the fund’s actual trading commencement. BlackRock’s brief showcase of iBTC on its website further fueled excitement about an upcoming spot Bitcoin ETF approval. Bitcoin’s price reached a yearly high of $35,000 as a result.
Re-sharing this yet again for folks who mistakenly believe that the SEC will randomly approve an ETF before the comment period even endsโฆ
November 8th is the last deadline and usually comments are reviewed for a while.
โ Joe Carlasare (@JoeCarlasare) October 23, 2023
SEC to Review Grayscale’s Bitcoin ETF Application
The Securities and Exchange Commission (SEC) received an official order to review Grayscale’s Bitcoin ETF application on the same day as BlackRock’s removal. Analysts believe that the SEC may have run out of reasons to reject it. However, the public comment period for BlackRock and other Bitcoin ETF applicants is still ongoing. Bitcoin-supportive litigator Joe Carlasare stated that November 8th is the final deadline, and comments are usually reviewed for a while before a decision is made.
Hot Take: BlackRock’s iBTC Removal Raises Questions about SEC Approval
The removal of BlackRock’s Bitcoin ETF from the DTCC list has raised concerns about the SEC’s approval process. Speculation suggests that the SEC may have influenced the decision or that BlackRock wants to wait until they are closer to launching the ETF. The impact on Bitcoin’s price highlights how sensitive the market is to news surrounding regulatory developments. While Grayscale’s Bitcoin ETF application is being reviewed, there is still uncertainty regarding when a spot Bitcoin ETF will be available to U.S. investors. The deadline for public comments on these applications is approaching, and it remains to be seen how the SEC will respond.
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