The iShares Spot Bitcoin exchange-traded fund (ETF) proposed by investment giant BlackRock has reached a significant milestone by being listed on the Depository Trust and Clearing Corporation (DTCC). This development suggests that approval from the U.S. Securities and Exchange Commission (SEC) could be on the horizon.
Bloomberg ETF analyst Eric Balchunas pointed out in an October 23 tweet that the DTCC listing is a vital part of the process for launching crypto ETFs. The iShares Spot Bitcoin ETF, which trades under the ticker IBTC, has the potential to be listed on the Nasdaq stock exchange, where it applied for listing and trading back in June.
Balchunas noted that this is the first spot ETF to be listed on the DTCC, and no other exchange has listed it yet. He speculated that BlackRock may have already secured SEC approval for the ETF or is working under the assumption that everything is ready to proceed. According to BlackRock's filing date, the SEC has until January 10, 2024, to make a final decision on the ETF's approval or rejection.
If the SEC approves BlackRock's application, it could set a precedent for other spot crypto ETF applications currently under review, including those from ARK Investment, Fidelity, and Valkyrie. As of now, the SEC has not approved applications to list spot Bitcoin or Ethereum on U.S. exchanges, but investment products linked to Bitcoin futures have been allowed since October 2021.
The DTCC listing comes on the heels of a U.S. appeals court order that directed the SEC to review Grayscale Investments' application for a spot Bitcoin ETF. Grayscale submitted a registration statement to the SEC on October 19, aiming to list shares of its Bitcoin Trust on the New York Stock Exchange Arca under the ticker GBTC. This suggests an increasing interest in spot Bitcoin ETFs within the regulatory sphere.
