NASDAQ listed BlackRock’s iShares Bitcoin Exchange-Traded Fund (ETF) proposal has advanced significantly, now included in the Depository Trust & Clearing Corporation (DTCC). This development is a crucial step towards potential approval by the United States Securities and Exchange Commission (SEC). As the world’s largest asset manager, BlackRock is poised for potential regulatory green light, with industry experts signaling optimism for the approval of its Bitcoin ETF initiative.
The world’s largest asset management company is actively preparing its Bitcoin ETF proposal, with industry experts noting positive indications for the potential approval of such products.
Eric Balchunas, a senior analyst at Bloomberg Intelligence, pointed out on Monday that IBTC is the first proposed spot Bitcoin ETF to be listed on the Depository Trust & Clearing Corporation (DTCC), a crucial financial market infrastructure entity handling trillions of dollars in daily securities transactions.
— Eric Balchunas (@EricBalchunas) October 24, 2023
A DTCC subsidiary, the National Securities Clearing Corporation (NSCC), manages a clearing process for ETFs, including the ability to scrutinize the ETF’s portfolio constituents. This system also automates the creation and redemption of ETF shares, along with their subsequent settlement, as detailed by the company.
Balchunas raised the possibility that BlackRock might have obtained approval from the SEC for listing the ETF, or they are making preparations under the assumption of approval. According to the timing of BlackRock’s application, the SEC must make its final decision regarding the ETF’s approval or rejection by January 10, 2024.
Prior to BlackRock’s amendment, other companies had also made changes to their Bitcoin ETF applications. On October 11, both Ark Invest and 21Shares updated their Bitcoin ETF filings. Bloomberg Intelligence analysts highlighted several revisions, including a clarification that the trust’s assets would not be mixed with corporate or other customer assets.
Ark’s CEO, Cathie Wood, explained in a recent CNBC interview that these amendments were made after discussions with the SEC.
The changes in the filings are just one of the visible advancements in the pursuit of a Bitcoin ETF. Grayscale recently submitted an application to register shares of its Bitcoin Trust (GBTC) under the Securities Act of 1933, marking a new phase in the process aimed at eventually transforming the trust into an ETF.
On Monday, the DC Circuit Court of Appeals officially confirmed its August verdict, deeming the SEC’s rejection of GBTC’s conversion into an ETF while allowing Bitcoin futures funds as “arbitrary and capricious.”
We did an article on that here.
Bitcoin is currently priced at $32,900 as of writing, reaching as high as $35,000 this morning.
