The investment community is abuzz as BlackRock, the world’s largest asset manager, moves closer to launching its Bitcoin exchange-traded fund (ETF). It is important to know that the ticker for the iShares Bitcoin Trust, labeled as IBTC, is now officially listed by the Depository Trust & Clearing Corporation (DTCC). This financial behemoth of an organization, DTCC, functions as the backbone of U.S. financial markets. It handles about $2.3 quadrillion worth of stock sales annually. Additionally, it holds the title of being the world’s largest financial clearinghouse. This revelation was brought to light by Senior Bloomberg Intelligence analyst Eric Balchunas on Twitter.
Moreover, last week’s amendment to BlackRock’s ETF application reveals an unnamed seed investor is planning to fund the product this October. While the exact date is redacted, this new development does indicate a potential launch could happen sooner rather than later. A seed capital investor plays an essential role in getting an ETF off the ground by initially funding it. However, it’s crucial to note that this does not guarantee the ETF’s immediate launch. Nonetheless, experts, including Balchunas and Scott Johnsson, a general partner at Van Buren Capital, have discussed these changes on X.
Wall Street and crypto
Since BlackRock’s first application for a Bitcoin ETF back in June, the cryptocurrency market has seen considerable movement. Bitcoin’s price notably surged after BlackRock’s application, reinforcing the asset as an “international asset,” as described by BlackRock’s CEO, Larry Fink. Besides BlackRock, other Wall Street bigwigs like VanEck, WisdomTree, and Valkyrie have filed their respective applications with the SEC for similar financial vehicles.
Experts in the field express varying opinions on the likely impact of an approved Bitcoin ETF. While some anticipate a significant inflow of new capital, boosting Bitcoin’s price further, others hold a more skeptical view. This skepticism stems from the fact that spot crypto ETFs are already operational in Europe and Canada but have not resulted in a massive influx of capital.
Regulatory milestones and future possibilities
Approval from the Securities and Exchange Commission (SEC) still remains a crucial step for the iShares Bitcoin Trust. It’s among about a dozen spot Bitcoin ETFs pending approval. While the SEC delayed all pending applications last month, thus prolonging the review process, market analysts feel that approval may be imminent. Some analysts at Bloomberg Intelligence even predict a 90% chance of approval as early as January.
The listing of the IBTC ticker on the DTCC’s list indeed marks a momentous step, hinting at an increasing likelihood of the iShares Bitcoin Trust ETF launch.
At the time of press, Bitcoin is currently trading at over $32,000 per coin, according to Coinmarketcap, representing about a 7% rise over the last 24 hours. Additionally, the asset has seen a significant increase since the start of the year when it was trading for $16,615, although it is still 55% lower than its all-time high of $69,044.
