Blockchain ETF Boost: BlackRock's Key Move

BlackRock, the globally recognized investment firm, has made a noteworthy development with its proposed iShares spot Bitcoin exchange-traded fund (ETF). This ETF has recently found its place on the Depository Trust & Clearing Corporation (DTCC), marking a significant step that suggests potential progress in the approval process by the United States Securities and Exchange Commission.

In a Twitter thread that unfolded on October 23rd, Bloomberg's ETF analyst, Eric Balchunas, shared valuable insights into the DTCC listing, emphasizing its significance in the broader landscape of bringing a cryptocurrency ETF to the market. The iShares ETF, which accurately tracks the price of Bitcoin (BTC), is currently trading at approximately $34,707 and holds the distinctive ticker symbol IBTC, indicating a potential future listing on the Nasdaq stock exchange. Notably, the Nasdaq initiated the listing and trading request for this investment vehicle as far back as June.

Balchunas, a well-regarded expert in the field, commented, "This marks the debut of a spot ETF on the DTCC, with no similar instances on record as of yet. It's especially noteworthy that BlackRock is taking the lead in managing various logistical aspects, such as seeding, selecting a ticker, and dealing with DTCC. It's hard to overlook this development as anything other than a clear signal that approval is either imminent or highly probable."

The iShares Bitcoin Trust has been listed on the DTCC (Depository Trust & Clearing Corporation, which clears NASDAQ trades). And the ticker will be $IBTC. Again all part of the process of bringing ETF to market.. h/t @martypartymusic pic.twitter.com/8PQP3h2yW0

— Eric Balchunas (@EricBalchunas) October 23, 2023

Moreover, Balchunas ventured into speculation, suggesting that BlackRock might have already received a nod of approval from the SEC or was actively preparing for such an outcome. Considering the application date, the SEC is expected to make a final decision regarding the ETF by January 10, 2024.

In the event that the SEC grants the much-anticipated approval for BlackRock's application, it could potentially pave the way for several spot crypto ETF filings currently under the watchful eye of the SEC. Major players in the financial industry, such as ARK Investment, Fidelity, and Valkyrie, have similar applications in the pipeline, eagerly awaiting their chance to enter the market. It's worth noting that, as of the current landscape, the SEC has not yet granted approval for any spot Bitcoin or Ether (ETH) applications to be listed on U.S. exchanges. However, it did make a noteworthy move by allowing investment vehicles linked to Bitcoin futures starting in October 2021.

The listing of BTCC comes in the wake of a significant legal development, with a U.S. appellate court issuing a mandate to enforce an earlier decision from August 29. This mandate effectively compels the SEC to conduct a thorough review of a spot BTC ETF application submitted by Grayscale Investments. Notably, Grayscale made its move by submitting a registration statement to the SEC on October 19, with the aim of listing shares of its Bitcoin trust on the New York Stock Exchange Arca under the distinctive ticker symbol GBTC.

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