Bitcoin ETF: Was DTCC’s Delisting of BlackRock’s Bitcoin ETF a Calculated Move?
DTCC’s unexpected delisting and quick relisting of BlackRock’s iShares Bitcoin Trust ETF has sent shockwaves through the cryptocurrency arena.
With the abrupt disappearance of the ETF from DTCC’s portfolio on Tuesday and a coincidental website outage, Bitcoin’s value took a notable nosedive but quickly recovered after being relisted on the platform.
Controversial Removal of BlackRock’s iShares ETF Rattles Crypto Market
Upon its introduction, BlackRock’s anticipated iShares Bitcoin Trust was swiftly incorporated into the DTCC’s reference database under the IBTC ticker symbol on Monday. Yet, in a perplexing turn, IBTC was promptly erased from the DTCC’s listings just a day later.
This unforeseen move triggered a tumultuous fluctuation in Bitcoin’s valuation. Adding to the intrigue, the DTCC website went offline temporarily amidst the controversy but has since returned to regular operation.
Compounding the situation, a DL news expose cited an unnamed source intimately acquainted with the matter, asserting that the DTCC’s decision to delist BlackRock’s iShares Bitcoin Trust ETF was no accident — it was a deliberate act. According to the piece, the objective behind the move was to allot time for “further research” given the massive spotlight the ETF had garnered.
Uncertainties Loom Around the Controversial Delisting
While the exact nature and reasoning of the investigation remain shrouded in mystery, questions are abounding. It’s still undetermined whether the decision to temporarily delist stemmed from an SEC directive, was influenced by another governing body, or was simply an internal choice by the DTCC.
When approached for clarity, the DTCC refrained from diving into the specifics of the unexpected delisting. They were, however, quick to clarify that a product’s presence on their list is by no means a stamp of regulatory approval or an indication of the result of any impending regulatory processes.
In an official statement, the clearinghouse noted that the iShares Bitcoin Trust ETF by BlackRock was originally added to their watchlist back in August. It was earmarked as a potential transaction set to be executed in the future, contingent upon receiving the green light from the SEC.
News-driven Crypto Volatility
Bitcoin’s price can be swayed dramatically by news events, and October 16 was a testament to that. A misinformed report led many to believe that BlackRock’s ETF had secured the SEC’s blessing, driving a swift 10% jump in BTC’s value. Bitcoinist highlighted this event as a classic case of how news and market speculations can heavily influence the cryptocurrency’s valuation.
Further adding fuel to the fire, the DTCC’s actions concerning the delisting and then relisting of BlackRock’s iShares Bitcoin Trust ETF have been a source of considerable debate. With an insider hinting at deliberate intentions behind the move, speculations are rife.
The DTCC, however, remains reticent on the topic, merely stating that being on their list isn’t a definitive nod from regulatory bodies.
As BTC paves its way upwards, all eyes will be on the unfolding events concerning the ETF. Its regulatory trajectory is bound to have ripple effects on the broader crypto ecosystem.
After recent market fluctuations, Bitcoin is back on a positive trajectory. Currently trading at $34,600, the leading cryptocurrency has posted a gain of over 2% in the last 24 hours, showcasing its resilient nature amidst volatile market conditions.
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