BlackRock’s iShares Bitcoin Trust Removed from DTCC List
The Depository Trust & Clearing Corporation (DTCC) briefly included BlackRock’s iShares Bitcoin Trust (IBTC) on its list before removing it the following day. This development has caused waves in the crypto market, highlighting the uncertain acceptance of crypto-related financial instruments.
Anticipation and Excitement
The initial listing of BlackRock’s IBTC on the DTCC list generated excitement within the crypto community. It indicated that US federal regulators might be open to a spot Bitcoin ETF, a sentiment echoed by many market experts. The DTCC is a reputable entity known for its stringent post-trade services, making its endorsement significant in the financial sector. This listing was seen as a major step towards bridging traditional finance, leading to a surge in Bitcoin’s price to $35,000 as speculation grew.
Read more: How To Buy Bitcoin (BTC) and Everything You Need To Know
A Short-Lived Euphoria
However, the excitement was short-lived as BlackRock’s IBTC appears to have been delisted from the DTCC roster after just one day. This news disappointed and worried the crypto market, causing Bitcoin’s price to drop 5.45% and reach an intraday low of $33,240. Technical analyst Nebraskan Gooner even warned that selling pressure might increase, potentially causing Bitcoin to revisit the $32,700 to $33,000 support area.
Regulatory Uncertainty and Skepticism
This sequence of events highlights the ongoing regulatory uncertainty in the crypto market. The delisting has fueled skepticism among conservative investors and reignited the debate about the readiness of the regulatory framework for crypto-based financial instruments.
Repercussions and Trader Sentiment
While the full impact on the market is still unfolding, traders are left with mixed feelings. Trading data shows liquidations of nearly $80 million so far, reflecting the bittersweet aftermath of this incident.
Hot Take: Regulatory Hurdles Persist for Crypto Financial Instruments
The removal of BlackRock’s iShares Bitcoin Trust from the DTCC list highlights the challenges and uncertainties surrounding the acceptance of crypto-related financial instruments. Despite growing anticipation for a spot Bitcoin ETF, regulatory hurdles continue to hinder progress in bridging traditional finance with cryptocurrencies. This incident serves as a reminder that conservative investors remain skeptical, emphasizing the need for a clearer and more robust regulatory framework in order to foster confidence and stability in the crypto market.
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