BlackRock’s spot Bitcoin ETF now Listed on Nasdaq
The DTCC has listed a ticker for BlackRock's iShares Bitcoin Trust (IBTC), signaling the upcoming launch of a Bitcoin ETF.
In a significant development, the Depository Trust & Clearing Corporation (DTCC), a key entity in the U.S. financial markets, listed a ticker for BlackRock's iShares Bitcoin Trust, known as IBTC. The DTCC, responsible for handling an insane $2.3 quadrillion worth of stock sales annually, is the world's largest financial clearinghouse. The listing of IBTC is a clear indication of the upcoming launch of BlackRock's Bitcoin ETF.
The iShares Bitcoin Trust has been listed on the DTCC (Depository Trust & Clearing Corporation, which clears NASDAQ trades). And the ticker will be $IBTC. Again all part of the process of bringing ETF to market.. h/t @martypartymusic pic.twitter.com/8PQP3h2yW0 — Eric Balchunas (@EricBalchunas) October 23, 2023
Recent amendments in BlackRock's application have shed light on the involvement of a seed investor. This investor is expected to fund the product, providing the initial capital required to get the ETF off the ground and trading on a stock exchange. While the exact date of this investment remains undisclosed, it is confirmed that the seed capital investor plans to buy shares within the month.
An Exchange-Traded Fund (ETF) is an investment tool that allows investors to purchase shares that mirror the value of an underlying asset. In the context of a Bitcoin ETF, investors can gain exposure to Bitcoin's price movements without the need to engage with a cryptocurrency exchange or handle the digital coin directly. While regulators have approved Bitcoin futures ETFs, which trade contracts based on future cryptocurrency prices, they have been hesitant with spot products.
So two things caught my eye from the latest iShares (Blackrock) S-1 amendment:
- They've obtained a CUSIP in prep for a launch
- They may be looking to seed with cash this month (which is earlier than I would've thought, but may be nothing) pic.twitter.com/lMDaKxiIbB — Scott Johnsson (@SGJohnsson) October 23, 2023
Many experts believe that approval for a Bitcoin ETF is coming, with Bloomberg Intelligence analysts suggesting a 90% chance of approval in January. BlackRock's CEO, Larry Fink, has previously lauded Bitcoin as an "international asset" and discussed the transformative potential of cryptocurrency in "digitizing gold."
BlackRock is not alone in its pursuit of a Bitcoin ETF. Other Wall Street players, including VanEck, WisdomTree, and Valkyrie, have also submitted applications to regulators for similar investment vehicles. The approval of such a product could potentially usher in a new wave of capital into the crypto market. However, there is skepticism among others, pointing to the existence of crypto spot ETFs in Europe and Canada, which did not result in a significant increase in capital entering the crypto space.
BTC/USD Trading Pair. (Source: TradingView)
Bitcoin is currently trading for over $34,000 per coin, according to TradingView. That's nearly a 5% 24-hour rise. The asset is up significantly since the start of the year—when it was trading for $16,615—but still 55% lower than the all-time high of $69,044 it touched in November 2021.
