Bitcoin Dips 3% in Minutes as DTCC Removes BlackRock’s iShares Bitcoin Trust Ticker From List – Are Spot BTC ETF Approvals At Risk?
The news of the US Depository Trust & Clearing Corporation (DTCC) removing BlackRock’s iShares Bitcoin Trust (Ticker) from its list of securities has caused a dip of 3% in Bitcoin prices in minutes. DTCC is the world’s largest securities depository that operates the national securities exchanges and the clearing of exchange-traded products. The news has made some investors worry that this could push back any potential near-term approvals for a Bitcoin Exchange-Traded Fund (ETF).
The removal of the iShares Ticker was first reported by news outlet CoinDesk, which stated that “The iShares Bitcoin Trust, issued by BlackRock, was de-listed from the DTCC’s Security Master Reference Data System on Wednesday, Feb. 17. The removal became noticeable in the “Ticker” column on the DTCC website, where the BTC ticker was formerly displayed.”
Although the removal of the ticker has resulted in a price dip in Bitcoin, analysts believe that this does not significantly affect the chances of potential Bitcoin ETFs being approved. The U.S. Securities and Exchange Commission is still reviewing the applications for potential Bitcoin ETFs submitted by other companies including VanEck and Gemini.
It is likely that some investors and analysts have taken the news to mean that the potential approval of the ETF is being delayed, which could be the cause of the sudden dip in prices. Investment firms such as Grayscale Investments, which owns the Bitcoin Investment Trust, are still planning to launch ETF products once the approval process is completed by the SEC.
It is, however, important to note that the removal of the ticker from the list does not mean that the ETF will not be approved. The SEC still needs to review the application and determine whether it meets all the legal and regulatory criteria before giving its approval. Until then, investors will have to wait to see if the ETF will be approved or not.