ETF Drama Unveiled

Martin Walker
Oct 25, 2023 at 01:01 pm

The ongoing saga of the US-based exchange-traded fund (ETF) has captured our attention as BlackRock's IBTC mysteriously vanishes, then magically reappears on the enigmatic Depository Trust and Clearing Corporation (DTCC) website.

As these puzzling events continue to unfold, they have sent shockwaves through the world of cryptocurrency, causing Bitcoin's price to exhibit substantial, almost turbulent, fluctuations. This is not entirely surprising, as it is quite customary for the DTCC to perform these enigmatic maneuvers shortly before ushering in a new ETF product.

It is noteworthy to mention that IBTC's initial appearance on the DTCC website took place just yesterday, sparking a noticeable and rather exuberant spike in Bitcoin's valuation. On that very day, Bitcoin briefly danced beyond the $35,000 threshold before gracefully retreating to the more conservative level of around $33,000. This intriguing dynamic underscores the idea that a significant portion of recent trading activity appears to be inextricably intertwined with the anticipation of developments related to the ETF sector. Indeed, traders are keeping a close watch on the ebbs and flows of ETF-related progress.

In a recent revelation by Reuters on this very October 25, we came to learn that the mysterious inclusion of IBTC in the DTCC's web sphere had, in fact, transpired in the dog days of August. However, the event only attracted the spotlight and mainstream attention a mere few days ago. According to an informative spokesperson from DTCC, this process of appending securities to the NSCC security eligibility file is a customary procedure aimed at preparing the stage for the grand entrance of a new ETF into the market. It's crucial to emphasize that this inclusion should not be misconstrued as an indicator of the outcome of any ongoing regulatory or approval processes.

In concordance with this sentiment, the astute observers of the financial landscape have postulated that these intriguing moves by the DTCC are indicative of BlackRock's meticulous preparations, poised for a grand debut once they obtain the highly sought-after SEC approval. In the meantime, the cryptic 'N' designation adjacent to the listing appears to be a secret code, signifying that "it's not open for create redeem because it's not live yet," as suggested by the ever-watchful Bloomberg ETF analyst, James Seyffart.

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