BlackRock’s Bitcoin ETF Listing Removed from DTCC Website
The recent rally in the price of bitcoin has been attributed to growing optimism surrounding the potential approval of a spot bitcoin exchange-traded fund (ETF) by the US Securities and Exchange Commission (SEC). However, hopes of an imminent launch were dampened when BlackRock’s proposed bitcoin ETF, iShares Bitcoin Trust, was suddenly delisted from the Depository Trust & Clearing Corporation’s (DTCC) website.
BlackRock Likely Told to Remove Listing
Previously listed on the DTCC website, BlackRock’s bitcoin ETF had generated excitement as it indicated that launch was imminent, with BlackRock obtaining a ticker symbol and CUSIP code. Analysts now speculate that BlackRock may have been instructed by the SEC to remove the listing, suggesting that approval may not be as close as initially anticipated.
Precise Timing of Approval Remains Uncertain
While the SEC still needs to review public comments and make a final decision, which could take several weeks or even months, other firms such as Ark Invest and 21Shares also have pending bitcoin ETF proposals before the SEC. If approved, multiple ETFs could potentially launch simultaneously. Although an SEC approval for a bitcoin ETF seems more likely now, the exact timing remains uncertain despite the recent price action.
BlackRock’s Bitcoin Trust Delisted from DTCC Website
Analysts were intrigued when BlackRock’s proposed iShares Bitcoin Trust was listed on the Depository Trust & Clearing Corporation (DTCC) website, as it suggested that the asset management giant was preparing for an imminent launch. However, the listing disappeared from the DTCC site on Tuesday, indicating that the SEC may have advised BlackRock to remove it. This suggests that approval may not be as close as initially believed.
Speculation on SEC’s Involvement
Bloomberg ETF analyst Eric Balchunas speculated on Twitter that the SEC may have contacted BlackRock regarding the delisting. While surprising, this action could indicate that BlackRock plans to relist the ETF only a few days or weeks before its launch.
Wait, with today’s update, now the iShares Bitcoin Trust IBTC is gone from DTCC’s list? @EricBalchunas @JSeyff pic.twitter.com/fH9oy4ribx
— Joe Light (@joelight) October 24, 2023
Approval Still Pending SEC Review
The SEC is still in the process of reviewing public comments and making a final ruling on BlackRock’s bitcoin ETF proposal. This process typically takes at least 30 days from the end of the comment period in early November. Other firms, including Ark Invest, also have spot bitcoin ETF applications awaiting the regulator’s decision.
Uncertain Timing Despite Price Rally
While approval for a bitcoin ETF no longer seems imminent, there are indications that the SEC may eventually open the door to spot bitcoin ETFs after years of rejections. However, the exact timing of this remains uncertain, suggesting that the recent bitcoin price rally may have been premature.
Hot Take: BlackRock’s Bitcoin ETF Listing Removed from DTCC Website
The sudden removal of BlackRock’s proposed bitcoin ETF listing from the DTCC website has cast doubt on the imminent launch of a spot bitcoin ETF. Speculation suggests that the SEC may have instructed BlackRock to remove the listing, indicating that approval may not be as close as previously thought. While signs point to the SEC eventually allowing spot bitcoin ETFs, the precise timing remains uncertain. This uncertainty highlights the importance of closely monitoring regulatory developments in the crypto space to accurately assess market expectations and avoid premature price rallies.
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