BlackRock's iShares Bitcoin ETF Inches Closer to SEC Approval

Investment powerhouse BlackRock is making strides in its quest to introduce an iShares spot Bitcoin exchange-traded fund (ETF). Recent developments indicate the firm's proposal might be inching closer to getting a nod from the United States Securities and Exchange Commission.

On October 23, through an X platform thread, Eric Balchunas, a renowned ETF analyst with Bloomberg, shed light on the matter. He pointed out that the ETF, earmarked with the ticker symbol IBTC, has been listed on the Depository Trust & Clearing Corporation (DTCC). This step is typically seen as one of the vital precursors to launching a crypto ETF in the market. Balchunas further highlighted that BlackRock's ETF is the first of its kind to be enlisted on DTCC.

Moreover, he expressed a viewpoint, suggesting that BlackRock might be receiving strong indicators or hints about a favorable outcome, given the proactive steps they've taken in terms of logistics and preparations. It's worth noting that the Nasdaq stock exchange had previously shown interest in this ETF, putting forth an application in June to list and trade its shares.

For context, the United States Securities and Exchange Commission has a window extending till January 10, 2024, to declare its final stance on BlackRock’s ETF application. A stamp of approval for BlackRock's ETF could potentially pave the way for several other spot crypto ETF proposals, currently under the SEC's scanner. Some of these proposals come from reputable entities like ARK Investment, Fidelity, and Valkyrie.

Interestingly, while the SEC hasn't given a go-ahead for any spot Bitcoin or Ether ETF listing on American exchanges, they began accommodating investment options linked to Bitcoin futures in October 2021.

Furthermore, this BlackRock initiative comes hot on the heels of a U.S. appellate court's ruling from August 29, urging the SEC to revisit Grayscale Investments' spot BTC ETF application. Grayscale made its move by forwarding a registration document for listing its Bitcoin trust shares on the New York Stock Exchange Arca on October 19, under the ticker GBTC.

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