BlackRock's iShares Bitcoin ETF Inches Closer to Approval; Sparks Speculation
Summary:
BlackRock's iShares Bitcoin ETF has been registered with the Depository Trust & Clearing Corporation, hinting at potential approval by the SEC. The listing is seen as a crucial step towards bringing the crypto ETF to the market. If approved, this could set off a wave of spot crypto ETF filings currently under SEC review. The SEC is required to make a final decision by January 10, 2024.
Investment company BlackRock's proposal for a Bitcoin ETF, known as iShares, is now registered with the Depository Trust & Clearing Corporation (DTCC). This has incited speculation that the U.S. Securities and Exchange Commission (SEC) might be leaning towards approval. As noted by Bloomberg ETF analyst Eric Balchunas in an Oct. 23 X (previously Twitter) post, the DTCC enlistment is a crucial step in bringing a crypto-oriented ETF to the market. The anticipated ticker symbol for the iShares Bitcoin ETF on the Nasdaq stock exchange, where the listing was requested in June, is IBTC.
"This is the inaugural spot ETF registered on DTCC, no others exist at the moment," commented Balchunas. He noted BlackRock's forward position in tackling key pre-launch logistics, such as seeding, ticker assignment, and DTCC registration, as an indicator of likely approval. The iShares Bitcoin Trust's DTCC enlistment signifies the readiness for Nasdaq trades under the ticker $IBTC.
As Balchunas suggested, it's plausible that BlackRock has already secured SEC's approval for the ETF or is preparing for this outcome. Based on the timing of BlackRock's application, the SEC is required to make a final resolution by Jan. 10, 2024, either granting approval or rejecting the variant.
If the application receives approval, it could mark the beginning of an influx of spot crypto ETF filings currently under SEC review, including proposals from ARK Investment, Fidelity, and Valkyrie. Until now, the SEC hasn't sanctioned any U.S. exchange listings for a spot BTC or Ether application. Nevertheless, it started permitting investment vehicles tied to Bitcoin futures in October 2021. Following a decree by a U.S. appellate court on Aug. 29, the SEC had to reevaluate a spot BTC ETF application submitted by Grayscale Investments. Grayscale filed a registration statement on Oct. 19 to the SEC for listing its Bitcoin Trust shares on the New York Stock Exchange Arca using the ticker symbol GBTC.
Published At
10/23/2023 9:28:28 PM
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