BlackRock, the world’s largest asset manager, has taken a bold step towards launching a Bitcoin Exchange-Traded Fund (ETF). The company’s iShares Bitcoin Trust has recently made an appearance on the Depository Trust and Clearing Corporation (DTCC) website, as reported by The Wolf Of All Streets, author of The Wolf Den Newsletter.
This financial market giant processes trillions of dollars in daily transactions. The ticker IBTC identifies the trust, and this listing marks the first proposed spot Bitcoin ETF on DTCC.
This development comes on the heels of BlackRock’s October 18 amendment to its initial Bitcoin ETF proposal. Legal experts and analysts have taken particular note of this amendment, which introduced a CUSIP—a unique identifier necessary for North American securities.
Additionally, the filing mentioned the intention to purchase seed creation baskets for the ETF in October, subject to specific conditions. It indicates BlackRock’s active involvement in acquiring BTC, even if in relatively modest quantities.
BlackRock’s foray into the Bitcoin ETF realm reflects a broader trend within the financial sector. Other investment firms, such as Ark Invest and 21Shares, have also recently updated their Bitcoin ETF applications. Notably, Ark Invest’s amendments followed discussions with the U.S. Securities and Exchange Commission (SEC), implying ongoing regulatory conversations.
Grayscale, a cryptocurrency investment firm, is also advancing towards the ETF space. They have registered shares of their existing Bitcoin Trust under the Securities Act of 1933, with an eye on converting it into an ETF in the future. These collective efforts underscore growing optimism that Bitcoin ETF approval may be on the horizon, with BlackRock’s involvement seen as particularly bullish.
These developments unfold against a backdrop of significant legal strides. The DC Circuit Court recently criticized the SEC’s rejection of Grayscale’s ETF conversion as “arbitrary and capricious,” fueling expectations of a more favorable regulatory environment.
Bitcoin’s Impressive Gain
The cryptocurrency market has responded favorably to these developments. BTC’s price surged on Monday, briefly crossing the $35,000 mark for the first time since May 2022. The sudden uptick in BTC’s value witnessed a substantial gain in the past 24 hours, soaring from $31,000 to over $34,000. Currently, the cryptocurrency is trading at $34,523.49, reflecting an impressive 11.86% daily increase and an impressive 22.37% gain in the weekly chart.
However, the enthusiasm surrounding BlackRock’s involvement and the potential for Bitcoin ETF approval is driving positive sentiment within the cryptocurrency community, hinting at a brighter future for digital assets in traditional finance.
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