BlackRock’s iShares Bitcoin Trust ETF (IBTC), filed with the SEC in June 2023, has generated excitement among traditional investors seeking Bitcoin. On October 23, 2023, the DTCC added the symbol IBTC to its securities eligibility file, causing the price of Bitcoin to rise by more than 10%, followed by a fall of more than 3% after its sudden disappearance. Eventually, the IBTC symbol reappeared, reinforcing the uncertainty. A story in 3 acts.
Act 1: Excitement and Speculation
On October 23, 2023, DTCC website displayed IBTC symbol in its securities eligibility file, which has sparked enthusiasm among Bitcoin investors. Indeed, this was interpreted as a sign that BlackRock’s ETF was close to being approved by the SEC, which would be a first for a spot Bitcoin ETF in the United States. The price of Bitcoin then jumped by more than 10%, going from $29,994.44 to more than $34,000.
Act 2: Disappointment and confusion
However, the next day, the IBTC symbol has disappeared from the DTCC website, without explanation. This caused a reverse reaction in the Bitcoin market, which fell by more than 3%, falling below $33,000. Investors were disappointed and confused by the turnaround, which called into question the chances of approval of BlackRock’s ETF.
Act 3: The unexpected twist
But, today (October 25, 2023), in a twist worthy of Scorsese, the IBTC symbol reappeared on the DTCC website… With its disappearance the price of bitcoin had fallen to join the $33,800. At the time of writing this article, the IBTC symbol has reappeared on the DTCC website and the price of bitcoin is up by +0.25%, according to CoinGecko.
Explanations from the DTCC and analysis by Eric Balchunas
The DTCC said the addition of the IBTC symbol to its securities eligibility file was an standard practice to prepare the launch of a new ETF on the market, and that This did not mean that the ETF had been approved by the SEC or that it would be approved soon. The DTCC also clarified that the IBTC symbol was added to its file as early as August 2023, but that it was not made public until October 23, 2023.
A DTCC spokesperson said adding securities to the NSCC Securities Eligibility File was a common practice “in preparation for the launch of a new ETF on the market”.
“Appearance on the list is not an indication of the outcome of any ongoing regulatory or other approval process.”added the spokesperson.
Eric Balchunas, senior ETF analyst at Bloomberg, pointed out that the drama around the IBTC listing appeared to be behind of the brief interruption of the website from the DTCC:
Looks like the DTCC website has crashed pic.twitter.com/UyrrfAl2Eu
— Eric Balchunas (@EricBalchunas) October 24, 2023
DTCC doesn’t typically receive this much attention, Balchunas said, which “testifies to the uniqueness and intensity of this entire saga”.
The BlackRock ETF
The SEC, meanwhile, has not yet given its verdict on the BlackRock ETF, nor on other Bitcoin spot ETF applications that have been filed by other companies, such as Ark Investment Management or Grayscale Investments . The SEC has, however, approved several ETFs based on Bitcoin futures, which are already available in US markets.
Source: CoinGecko, Decrypt, Coin Telegraph
On the same subject :
– Powered by the craze around ETFs, the price of Bitcoin attacks $35,000
– BlackRock is already preparing for the launch of its Bitcoin ETF
– JPMorgan expects Bitcoin ETFs to be approved “in the coming months”