Introduction: A Positive Sign for BlackRock’s Bitcoin ETF
BlackRock, a major investment firm, has made a significant stride with its proposed iShares spot Bitcoin ETF. This ETF has now found its place on the Depository Trust & Clearing Corporation (DTCC), hinting at a possible approval by the U.S. Securities and Exchange Commission (SEC).
Key Developments and Remarks from an Expert
According to a recent thread on X (previously known as Twitter) by Bloomberg ETF analyst Eric Balchunas, the DTCC listing is a standard step in the journey of introducing a crypto ETF to the market. The ETF, tagged with the ticker symbol "IBTC", is in line for listing on the Nasdaq, with an application made earlier in June.
Balchunas pointed out the significance of this move by stating, “This is [the] first spot ETF listed on DTCC.” He further emphasized how BlackRock seems to be ahead in finalizing logistical matters usually observed right before an ETF launch, hinting that an approval might be close at hand.
Speculations and Timelines
There's growing speculation that the SEC might have already given a nod to BlackRock or the firm is gearing up in anticipation of a positive outcome. The deadline for the SEC's final verdict on BlackRock's ETF application is January 10, 2024.
Potential Ripple Effect of Approval
An approval of BlackRock's ETF might pave the way for numerous other spot crypto ETFs awaiting the SEC's review. This list includes prominent names such as ARK Investment, Fidelity, and Valkyrie. As of now, the SEC hasn't given a green light to any spot Bitcoin or Ether ETF for listing on U.S. exchanges. However, they began endorsing investment tools linked to Bitcoin futures in October 2021.
In a related development, following a court decision dated August 29, the SEC has been directed to reassess a spot BTC ETF application from Grayscale Investments. Grayscale's ambition is to list its Bitcoin trust shares on the New York Stock Exchange Arca under the ticker "GBTC", with an application submitted on October 19.
BlackRock's recent ETF listing on the DTCC signifies growing momentum in the crypto ETF space. As financial giants like BlackRock make advancements, it could be a game-changer for crypto acceptance in traditional investment circles.