In a significant development in the cryptocurrency market, BlackRock, one of the world's largest investment firms, is making notable progress toward gaining approval for its iShares spot Bitcoin exchange-traded fund (ETF). The ETF, carrying the potential ticker symbol IBTC, has achieved a crucial milestone by being listed on the Depository Trust & Clearing Corporation (DTCC). This strategic move suggests a promising trajectory towards approval by the United States Securities and Exchange Commission (SEC).
According to Eric Balchunas, an ETF analyst at Bloomberg, the listing on DTCC represents a critical phase in the process of bringing a cryptocurrency ETF to the market. This development underscores growing optimism regarding the SEC's forthcoming approval of a crypto ETF.
What distinguishes this development is the iShares spot Bitcoin ETF's status as the first of its kind to secure a listing on DTCC, setting it apart from its peers. Balchunas speculates that BlackRock's proactive approach in dealing with essential logistics, including seeding, ticker allocation, and DTCC listing, reflects their strong conviction of an imminent SEC approval.
Speculation within the industry suggests that BlackRock may have already received a tacit nod of approval from the SEC, or it is diligently preparing for that eventuality. Notably, the SEC has until January 10, 2024, to make its final decision regarding the ETF's approval or denial, based on the application submission date.
If BlackRock's application receives the green light, it could pave the way for a surge of spot crypto ETF submissions currently under the SEC's review. This includes applications from other prominent financial institutions such as ARK Investment, Fidelity, and Valkyrie. As of now, the SEC has yet to approve a spot Bitcoin or Ether ETF for listing on a U.S. exchange, but it did start allowing investment vehicles associated with Bitcoin futures in October 2021.
This latest development follows a mandate from a U.S. appellate court that enforces the SEC's review of a spot Bitcoin ETF application from Grayscale Investments. On October 19, Grayscale submitted a registration statement for listing shares of its Bitcoin trust on the New York Stock Exchange Arca under the ticker symbol GBTC.
BlackRock's proactive stance in advancing the iShares Bitcoin ETF underscores the ever-growing acceptance of digital assets within the traditional financial landscape and the ongoing efforts to usher in a spot Bitcoin ETF in the United States. This development could potentially reshape the cryptocurrency market and further integrate it into mainstream financial institutions and markets.
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