BlackRock’s spot Bitcoin exchange-traded fund (ETF) IBTC has once again surfaced on the Depository Trust and Clearing Corporation’s (DTCC) website after an unexplained disappearance for several hours. The incident sparked widespread speculation and conversations among crypto enthusiasts and experts, leading many to question whether this was due to a technical glitch or a strategic maneuver.
Renowned Senior ETF Analyst at Bloomberg, Eric Balchunas, succinctly captured the sentiment of many when he remarked, “It’s baaaaack…” Joe Light, from Barron’s Online, also chimed in with his observation, tweeting: “Wow, the iShares Bitcoin Trust (IBTC) appears to be back. What is happening.”
He further noted a distinct change in the new listing compared to its previous state. The earlier version had a “Y” under the create/redeem section, whereas the updated one showed an “N.” Light pondered publicly, “Could it indicate a launch without that attribute a la the existing Bitcoin trusts? Or does the prospectus preclude that/does that not make sense?”
James Seyffart responded, suggesting that the alteration indicates BlackRock’s preparatory steps ahead of an anticipated launch. He opined, “Think it indicates Blackrock is getting everything ready to launch if and when they get an SEC approval. And that the N just means it’s not open for redeem because it’s not live yet.” Light further speculated, “And maybe the original “y” was a screw up that needed to be corrected? Makes sense.”
Gabor Gurbacs, founder of PointsVille and advisor to Tether and VanEck, in his remarks, was keen to put things into perspective. He noted that institutions are clearly committed to spot Bitcoin ETFs. He elaborated, “The largest and most skilled industry titans ($ Trillions in AUM) are working on making the spot Bitcoin ETF happen.”
Gurbacs further cautioned against reading too much into operational details, stating, “The media tends to take out of context every filing and operational detail to create a story. There is no story… To me, it’s all directionally good news and the right type of industry and regulatory collaboration.” He also explained:
Issuers can purchase tickers/ISINs/CUSIPs (symbols) early and register with the DTCC (via exchanges/service providers). Usually issuers register symbols early with service providers, but one can register symbols early without being approved. The Bitcoin ETF is a sensitive topic, so my guess is the SEC gave a call to BlackRock to hold their horses on this matter.
Remarkably, according to a recent Reuters report, BlackRock’s proposed spot Bitcoin ETF already found its way onto a clearing-house eligibility file back in August. Official word from DTCC also clarified that appearances on their list do not presuppose any regulatory approvals. Their spokesperson emphasized that the listing is a “standard practice… in preparation for the launch of a new ETF,” thereby not an explicit indicator of any regulatory outcome.
The market mirrored the industry’s sentiment, with Bitcoin’s price experiencing significant fluctuation. Post the sudden listing of the IBTC on DTCC’s website on October 23, Bitcoin’s price climbed to a yearly high. However, its temporary removal witnessed a 3% drop, clearly indicating the market’s acute sensitivity to ETF-related events.
At press time, BTC traded at $34,227.
Bitcoin holds above $34,000, 1-day chart | Source: BTCUSD on TradingView.com Featured image from Shutterstock, chart from TradingView.com
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Jake Simmons Jake Simmons has been a Bitcoin enthusiast since 2016. Ever since he heard about Bitcoin, he has been studying the topic every day and trying to share his knowledge with others. His goal is to contribute to Bitcoin’s financial revolution, which will replace the fiat money system. Besides BTC and crypto, Jake studied Business Informatics at a university. After graduation in 2017, he has been working in the blockchain and crypto sector. You can follow Jake on Twitter at @realJakeSimmons.