“The listing of the planned BlackRock bitcoin ETF by DTCC is a significant development in the crypto space, but it’s important to note that it is not indicative of regulatory approval, adding an intriguing layer of uncertainty to the future of cryptocurrency investments.”
The listing of BlackRock’s proposed bitcoin ETF on the Depository Trust and Clearing Corporation (DTCC) website has sparked optimism about the imminent approval of such funds. However, DTCC has clarified that including ETFs that have not yet gained regulatory approval is common practice for the financial market infrastructure giant.
Bloomberg Intelligence analysts and others have pointed out that the iShares Bitcoin Trust (IBTC), which was first proposed to the Securities and Exchange Commission (SEC) in June, is on the DTCC list. This has led some to speculate that the launch of the planned fund is imminent.
According to a spokesperson for DTCC, adding securities to its “eligibility file” in preparation for potential ETF launches is standard practice. The file, maintained by DTCC subsidiary National Securities Clearing Corporation (NSCC), includes both active and potential ETF securities. The proposed BlackRock offering was added to the list in August.
However, being on the list does not indicate the outcome of any outstanding regulatory or approval processes for a particular ETF fund, as stated by the DTCC representative. It simply means that an agent bank has requested a DTCC identifier for an ETF fund, and DTCC may process the transaction at an undetermined date in the future following SEC approval.
Interestingly, the IBTC briefly disappeared from the list on Tuesday before reappearing later. The DTCC spokesperson declined to comment on this change. BlackRock has also declined to comment on the listing.
The SEC has never allowed a spot bitcoin ETF to begin trading, despite attempts from issuers over the past decade. However, with bitcoin trading above $34,000 and optimism about the potential approval of bitcoin ETFs in the coming months, there is renewed hope in the market.
Fund issuers have been updating their bitcoin ETF applications in recent weeks, indicating ongoing dialogue with the SEC. Grayscale Investments, for example, has expressed its intention to convert its Bitcoin Trust (GBTC) to an ETF after its legal victory over the SEC.
While the listing of BlackRock’s proposed bitcoin ETF on the DTCC website may be a positive sign, it is important to remember that it does not guarantee approval or a specific timeline for the fund’s launch. Investors and industry watchers will need to stay tuned for further updates from the SEC and other regulatory bodies.
[Read more: Another would-be bitcoin ETF player: ‘It’s going to get approved’]
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