BlackRock's Progress on Spot Bitcoin ETF Sparks Bitcoin Price Surge

BlackRock's Progress on Spot Bitcoin ETF Sparks Bitcoin Price Surge

BlackRock is making significant strides in launching its spot bitcoin exchange-traded fund (ETF) to the market. As the world's largest asset manager, they have not only secured a ticker symbol but also obtained a CUSIP number for its forthcoming spot bitcoin ETF, which is now listed on the Depository Trust and Clearing Corporation (DTCC). BlackRock's spot bitcoin ETF filing also hints at their intention to purchase bitcoin for the upcoming ETF this month.

BlackRock’s Spot Bitcoin ETF Now Listed on DTCC With Ticker IBTC

The recent developments have sent ripples of optimism throughout the crypto community regarding the launch of Blackrock’s spot bitcoin exchange-traded fund (ETF), and it's no surprise that Monday witnessed a substantial surge in Bitcoin's price. The allocation of IBTC's ticker symbol and its DTCC listing are considered mandatory steps for the ETF's launch.

The notable developments include the allocation of a ticker symbol (IBTC) and the assignment of a CUSIP number (46438F101) to the Ishares Bitcoin Trust. It is now listed on the Depository Trust and Clearing Corporation (DTCC), which is the regulatory body for clearing trading on Nasdaq.

Eric Balchunas, a senior ETF analyst at Bloomberg, said on social media platform X that these moves reflect BlackRock's commitment to the ETF launch process. 

He also noted that the recent amendment to the Registration Statement for the Ishares Bitcoin Trust filed with the US Securities and Exchange Commission (SEC) on October 18 suggests that BlackRock may be purchasing bitcoin this month to facilitate the ETF's launch. 

Balchunas explained:

"BlackRock stated in their recent spot bitcoin ETF amendment that they are seeding the ETF in October. I do not want to read much into it, but it is new information not in the original filing, so it is noteworthy."

However, he clarified, "Seeding is typically not a significant amount, just enough to kickstart an ETF. So, it's not necessarily indicative of BlackRock going on a massive bitcoin buying spree, but the fact that they're taking this step and disclosing it underscores their progress in the ETF launch process."

The Ishares Bitcoin Trust is sponsored by Ishares Delaware Trust Sponsor LLC, an indirect subsidiary of BlackRock. The filing details include that  “Ishares” is a registered trademark of Blackrock Inc. or its affiliates.

Martin Folb, a crypto enthusiast known as "Martyparty," explained on X: "Once the ETF is approved for registration, it can source its initial capital from a broker/dealer licensed 'bank,' in this case, Coinbase. This capital will be used to acquire the genesis shares,  or 'creation units' with native BTC. The initial coin funds are then exchanged for IBTC ETF shares, which will soon be available for open-market trading, setting the 'opening price' for IBTC."

SEC Approval for BlackRock’s Spot Bitcoin ETF Application

The critical question now is whether the SEC will approve BlackRock's spot bitcoin ETF application. Joe Carlasare, a litigator, shared on X: “Lots of misinformation out there about the next key dates for the Ishares/Blackrock bitcoin spot ETF application.”

He clarified, "On September 28, 2023, the SEC opened the floor for public feedback on the application, giving individuals until October 25th to share their thoughts. There is an additional window for replies, open until November 8th. Carlasare noted:

"The SEC does not typically approve rule changes or similar proposals until the comment request period is complete. This comment period is an essential part of their regulatory process."

He added, "Usually after the comment period ends, there's an additional 30-60 day review period. Therefore, if we do see a green light for a spot ETF in 2023, it's unlikely to be from BlackRock."

The impact of these developments has been reflected in Bitcoin's price, which shot up to USD 35,000 on Monday before a slight retreat. BTC stands at USD 34,423, marking a remarkable 13% increase over the past 24 hours.

The excitement around BlackRock's efforts to launch a spot bitcoin ETF continues to grow. As crypto enthusiasts eagerly await the SEC's decision, the crypto market remains on the edge of its seat. 

What is your take on Blackrock preparing to launch a spot bitcoin ETF? Do you believe the SEC will give the nod to spot bitcoin ETFs this year? Please share your thoughts and opinions in the comments section below.