BlackRock’s Proposed Bitcoin ETF Removed from DTCC Listings Amid BTC Rally

• BlackRock’s iShares Bitcoin Trust, previously listed on the DTCC website, has now been removed.
• The removal occurs amidst speculations of an imminent US regulatory approval for a bitcoin ETF.
• Bloomberg analysts weigh in on the potential reasons and implications behind this significant move.

As BlackRock’s Bitcoin ETF faces sudden delisting from the DTCC’s site, market participants speculate about the implications for the crypto sector and the ETF’s potential approval.

Unexpected Delisting Raises Questions

BlackRock’s iShares Bitcoin Trust, which had marked its position as the first potential ETF to be listed on the Depository Trust and Clearing Corporation (DTCC) website, has been mysteriously delisted. This move has raised eyebrows, particularly as it happened in the backdrop of a bitcoin price rally, which many believed was fueled by positive sentiments regarding the US’s anticipated regulatory nod for a bitcoin ETF.

Analysts’ Insights on the Delisting

Bloomberg analyst, Eric Balchunas, highlighted the previous listing as “notable,” interpreting it as a sign of BlackRock’s proactive measures in preparation for the ETF’s launch. Balchunas also commented on Monday, emphasizing the difficulty in not viewing the listing as an indication of an “imminent” or “certain” approval from the regulatory body. Another Bloomberg analyst, James Seyffart, speculated that the US Securities and Exchange Commission (SEC) might have communicated with BlackRock, leading to the removal. Balchunas expressed his surprise at the initial listing and opined that the ETF might have been pulled to be relisted closer to the actual launch date, potentially just days away instead of weeks or months.

Market Reactions and Broader Implications

As news of the delisting became public, bitcoin’s price witnessed fluctuations. After reaching a peak of $35,000, BTC has stabilized, currently trading at approximately $33,500. Such price movements hint at the crypto market’s sensitivity to regulatory developments, especially those linked to major financial institutions like BlackRock. The removal from DTCC’s website has led to concerns regarding the anticipated approval timeline. BlackRock refrained from making any comment on the matter, referencing their position within the “filing restriction period” dictated by regulatory protocols.

Other Noteworthy Developments in the Crypto Space

Apart from the ongoing speculations around BlackRock’s ETF, there’s also significant attention on other related developments. Specifically, the DC Circuit Court of Appeals recently gave its final verdict regarding Grayscale’s application to transition GBTC into an ETF. As the race for spot bitcoin ETFs continues to heat up, such decisions will play a pivotal role in shaping the trajectory of institutional participation in the crypto market.

Conclusion

The unexpected delisting of BlackRock’s proposed Bitcoin ETF from the DTCC’s website brings forth more questions than answers. As the crypto community keenly watches for regulatory signals, such moves only emphasize the sector’s evolving nature. While the implications of the delisting remain to be fully discerned, the event underlines the significance of regulatory decisions in influencing market sentiments and the broader adoption trajectory of cryptocurrencies.