Key Takeaways
- BlackRock's proposed iShares spot Bitcoin ETF has been listed on the DTCC.
- Bloomberg ETF analyst Eric Balchunas considers BlackRock's proactive role in the ETF's logistics an indicator of likely approval.
- An approval for BlackRock could open doors for other spot crypto ETFs currently under SEC review, changing the landscape of cryptocurrency investment vehicles.
BlackRock, a global investment firm, has taken another step toward the potential approval of its proposed iShares spot Bitcoin ETF by the United States Securities and Exchange Commission (SEC).
The investment vehicle has recently been listed on the Depository Trust & Clearing Corporation (DTCC), adding momentum to its approval prospects.
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On October 23rd, Bloomberg ETF analyst Eric Balchunas weighed in on this development, describing the listing on the DTCC as a key procedural step for BlackRock's ETF to be listed.
Balchunas emphasized the significance of BlackRock's leading role, stating:
Def notable BlackRock is leading the charge on these logistics (seeding, ticker, DTCC) that tend to happen just prior to launch. Hard not to view this as them getting a signal that approval is certain/imminent.
It is speculated that the SEC could already be leaning toward approving the ETF or that BlackRock is positioning itself accordingly. With an application filing date in the books, the SEC has a deadline of January 10th, 2024, to make its final determination on the proposal.
If approved, BlackRock's iShares spot Bitcoin ETF could serve as a precedent for other spot cryptocurrency ETFs currently under SEC review, including applications from ARK Investment, Fidelity, and Valkyrie.
Until now, the SEC has remained cautious, not greenlighting any spot Bitcoin or Ether ETFs but allowing investment products tied to Bitcoin futures since October 2021.
This development comes on the heels of a recent US appellate court mandate from August 29th, directing the SEC to review Grayscale Investments' spot Bitcoin ETF application.
BlackRock's iShares spot Bitcoin ETF inches closer to potential approval with its DTCC listing, eliciting optimistic sentiments among market analysts. If approved, it could catalyze a series of similar product offerings and signal a more permissive regulatory environment for cryptocurrency ETFs in the US.
