BlackRock’s iShares Bitcoin Trust ETF has been listed with a major clearing house under the ticker IBTC. Is this a sign of its forthcoming approval by the Securities and Exchange Commission (SEC)?
iShares Bitcoin Trust from BlackRock is listed with a clearing company
Since BlackRock filed an application for a spot ETF on Bitcoin (BTC) last June, market interest in exchange-traded funds has continued to grow, giving rise to a procession of applications from various players in traditional finance.
With last week’s false alarm, we saw the extent to which the ecosystem was eagerly awaiting approvals from the Securities and Exchange Commission (SEC). Since then, Bitcoin has emerged from its torpor of the past few months, once again attempting to climb above the $30,000 mark.
It’s not yet possible to say how sustainable this rise will be, but prices seem to be anticipating the forthcoming SEC approval of BlackRock’s ETF, and probably other funds too. As far as BlackRock specifically is concerned, there is a hint that its product is about to be opened for trading.
Indeed, this investment vehicle answering to the name iShares Bitcoin Trust and with the ticker IBTC has been listed with the Depository Trust & Clearing Corporation (DTCC), a US clearing company which operates notably on the NASDAQ.
Eric Balchunas, ETF analyst for Bloomberg, noted that “this is all part of the process of bringing the ETF to market”, suggesting that the product will soon be approved:
The iShares Bitcoin Trust has been listed on the DTCC (Depository Trust & Clearing Corporation, which clears NASDAQ trades). And the ticker will be $IBTC Again all part of the process of bringing ETF to market.. h/t @martypartymusic pic.twitter.com/8PQP3h2yW0
– Eric Balchunas (@EricBalchunas) October 23, 2023
In a nutshell, a clearing company enables the accounts of different financial players to be matched at the end of the day after the markets have closed. When it comes to trading, these are key players, and BlackRock’s move is therefore not insignificant.
While the SEC keeps postponing its decision on the various pending ETFs for Bitcoin spot, there’s no doubt that the first approvals will come sooner or later. The question now is when, although the market has been particularly optimistic in the short term on the subject in recent days.
