BlackRock’s proposed spot Bitcoin ETF, the iShares Bitcoin Trust, has been listed on the Depository Trust and Clearing Corporation (DTCC), suggesting potential approval by the United States Securities and Exchange Commission (SEC).
The DTCC is a financial market infrastructure giant that processes trillions of dollars in securities transactions daily. Its subsidiary, the National Securities Clearing Corporation (NSCC), has a process for clearing ETFs that includes the ability to review the ETF’s portfolio constituents and automate the creation and redemption of ETF shares and their subsequent settlement.
The listing of BlackRock’s proposed ETF on the DTCC website comes after the firm amended its proposal on October 18. The amendment included additional information about the ETF’s investment strategy and risk factors.
Bloomberg Intelligence senior analyst Eric Balchunas said that IBTC, the ticker symbol for BlackRock’s proposed ETF, is the first proposed spot Bitcoin ETF listed on the DTCC. He also noted that BlackRock’s move to list its ETF on the DTCC is a sign that the firm is preparing for a potential launch.
“This is first spot ETF listed on DTCC, none of the others on there (yet),” Balchunas wrote in a thread on X. “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.”
A BlackRock spokesperson declined to comment on the listing, citing filing restrictions. A DTCC representative did not immediately return a request for comment.
The SEC has yet to approve a spot Bitcoin ETF, but the listing of BlackRock‘s proposed ETF on the DTCC is a positive sign for investors who are eager to gain exposure to Bitcoin through a regulated investment vehicle.
What is a Spot Bitcoin ETF?
A spot Bitcoin ETF is an exchange-traded fund that tracks the price of Bitcoin. Investors can buy and sell shares of the ETF on a stock exchange, just like any other ETF.
Spot Bitcoin ETFs are different from other Bitcoin ETFs, such as the ProShares Bitcoin Strategy ETF (BITO), which track Bitcoin futures contracts. Futures contracts are derivative contracts that allow investors to bet on the future price of an asset.
Spot Bitcoin ETFs are considered to be more direct investments in Bitcoin, as they track the price of the underlying asset itself.
Why is BlackRock’s Proposed ETF Significant?
BlackRock is the world’s largest asset manager, with over $10 trillion in assets under management. The firm’s proposed spot Bitcoin ETF would be the first of its kind in the United States.
If approved by the SEC, BlackRock’s ETF would make it easier for institutional investors to gain exposure to Bitcoin. It would also send a strong signal that the SEC is open to approving spot Bitcoin ETFs.
The approval of a spot Bitcoin ETF would be a major milestone for the Bitcoin industry. It would legitimize Bitcoin as an investment asset and make it more accessible to a wider range of investors.
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