Bitcoin

BlackRock Spot Bitcoin ETF Is Now Removed From DTCC With Approval Doubts

Key Points:

The ticker of the BlackRock spot Bitcoin ETF was removed from the DTCC site, raising approval doubts.
SEC involvement was speculated, emphasizing crypto ETF regulatory challenges.
Uncertainty persists for BlackRock’s ETF and the crypto ETF landscape in the U.S.

The stock ticker IBTC of the BlackRock spot Bitcoin ETF has disappeared from the Depository Trust & Clearing Corporation (DTCC) website, raising questions about its approval status.

Source: Joe Light

BlackRock spot Bitcoin ETF Faces Approval Uncertainty

According to crypto industry expert Gabor Gurbacs, issuers often have the option to make preemptive moves, but this situation might have benefited from prior regulatory consultation. Bloomberg analyst James Seyffart speculated that the U.S. Securities and Exchange Commission (SEC) may have been in contact with BlackRock regarding this development.

BlackRock spot Bitcoin ETF, with the ticker symbol IBTC, had initially been listed on the DTCC, suggesting potential approval by the SEC. If approved, this ETF could pave the way for several other spot crypto ETFs currently under SEC review, including those from ARK Investment, Fidelity, and Valkyrie.

SEC Speculation Casts Doubt on Crypto ETF Future

As of now, the SEC has not greenlit a spot for Bitcoin or Ether ETFs to list on a U.S. exchange, although they began allowing investment products tied to Bitcoin futures in October 2021.

The appearance of the product on DTCC’s website followed BlackRock’s revision of its Bitcoin ETF proposal on October 18. Notably, other firms like Ark Invest and 21Shares had made changes to their Bitcoin ETF applications ahead of BlackRock, emphasizing that the trust’s assets would remain separate from corporate or other customer assets.

The removal of IBTC from the DTCC website has raised uncertainty about the future of BlackRock Bitcoin ETF and the broader landscape of crypto-related ETFs in the U.S. It underscores the evolving regulatory environment in which these investment products operate.

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Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.