BlackRock, the world’s largest asset manager, is one step closer to launching the first spot Bitcoin exchange-traded fund (ETF) in the U.S. market. The firm’s iShares Bitcoin Trust, which would track the current price of Bitcoin (BTC), has been listed on the Depository Trust & Clearing Corporation (DTCC), the trade clearing firm for Nasdaq.
A positive sign that the SEC may approve BlackRock’s spot Bitcoin
The DTCC listing is a positive sign that the U.S. Securities and Exchange Commission (SEC) may approve BlackRock’s spot Bitcoin ETF, which was filed in June 2021. The SEC has until Jan. 10, 2024 to make a final decision on the application.
Bloomberg ETF analyst Eric Balchunas said that the DTCC listing was “all part of the process” of bringing a crypto ETF to market. He also noted that BlackRock was leading the charge on the logistics of seeding the ETF, which is when initial funding is provided by a bank or broker dealer to purchase a few creation units of Bitcoin in exchange for ETF shares that can be traded on the first day.
A game-changer for the crypto industry
“Def notable BlackRock is leading charge on these logistics (seeding, ticker, dtcc) that tend to happen just prior to launch. Hard not to view this as them getting signal that approval is certain/imminent,” Balchunas tweeted.
BlackRock stated in its recent spot Bitcoin ETF amendment that it was seeding the ETF in October 2021. The firm also revealed that Coinbase would be the custodian for the ETF’s assets and pricing data. The iShares Bitcoin Trust would trade under the symbol IBTC on Nasdaq.
If approved, BlackRock’s spot Bitcoin ETF would be a game-changer for the crypto industry, as it would provide investors with direct exposure to Bitcoin without having to deal with the complexity and risk of buying and storing the cryptocurrency themselves. It would also open the door for other spot crypto ETFs that are currently under review by the SEC, such as those from ARK Investment, Fidelity, and Valkyrie.