By Kimberly Crain
On Monday, October 23, BlackRock’s Bitcoin exchange-traded (ETF) iShares was first seen on the Depository Trust & Clearing Corporation (DTCC) listed under the ticker symbol IBTC. The listing of BlackRock’s Bitcoin ETF sparked a mixed reaction among the crypto community.
The listing of IBTC signaled that the approval of the pending Bitcoin ETF applications by the US Securities and Exchange Commission (SEC) was nearing.
BlackRock Eying for Bitcoin EFT Approval
In an X post, Eric Balchunas, a Bloomberg ETF analyst, argued that the DTCC listing of BlackRock Bitcoin ETF was part of the process of introducing a new financial product in the market. The analyst was pleased to announce that the IBTC was the first Bitcoin ETF to be listed on DTCC.
In his address, the executive suspected that the SEC might have secretively approved BlackRock’s Bitcoin ETF. He assumed that the listing was preparation for BlackRock to launch its IBTC in the market officially. A review of the BlackRock ETF application demonstrated that the SEC has until January 10 next year to provide its response.
The application revealed that the BlackRock team plans to begin the seeding program in October. The proposed seeding of the EFT mandates the BlackRock team to raise substantial funds from banks and brokerage firms to support day-one trading of its IBTC.
Also read:This investment might not require a lot of funds to introduce the IBTC in the financial market. Occasionally, the seeding program comes before the official launching of a financial product. This implies that if BlackRock launches the seeding program this month, the IBTC might go live soon.
At present, BlackRock ranks among the best asset managers with assets worth over $10 trillion under management. In June, the BlackRock team filed a Bitcoin ETF application to expand its product offering.
SEC to Approve Bitcoin ETF Applications
Months after filing the application, other firms, including Fidelity, ARK Invest, Valkyrie, and Grayscale, demonstrated their growing appetite for offering the Bitcoin ETF. Even though the SEC has not provided any feedback concerning the Bitcoin ETF applications, the recent court orders to reexamine the Grayscale application compel the regulators to take decisive action.
Recently, the Grayscale team revised its application and submitted the S-1 form to the SEC. The resubmission came after the court ruled in favor of Grayscale to convert its $17 billion Bitcoin Trust (GBTC) offering to Bitcoin ETF.
The court described the SEC rejection of the Grayscale application as “arbitrary and capricious.” Commenting on the court decision, the Grayscale spokeswoman Jennifer Rosenthal supported the October 23 ruling.
She vowed to continue working with the SEC to support the approval of Grayscale EFT. The spokeswoman admitted that the GBTC is currently available in the market, but the asset manager plans to make meaningful moves to meet the demand of the investors.
Bitcoin Reacts to Spot BTC ETF Development
In light of the Grayscale ETF application, the SEC might approve or reject the submission. The ongoing speculation on the imminent approval of the spot Bitcoin ETF has triggered major crypto assets to gain a bullish steam.
At press time 13:35 UTC, Bitcoin increased by 12% to trade at $34,400, according to CoinMarketCap. As of October, Bitcoin established a strong uptrend to break the $30K resistance level.
The remarkable bullish rally has pushed the Bitcoin daily trading volume to reach $52 billion, a 187% increase within the last 24 hours.
Editorial credit: Poetra.RH / Shutterstock.com
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