BlackRock’s Bitcoin ETF Added to Clearing House Eligibility File, No Regulatory Approval Yet
BlackRock’s Bitcoin ETF Added to Clearing House Eligibility File
BlackRock’s proposed bitcoin exchange-traded fund (ETF) has been added to a clearing house eligibility file, but the move does not indicate any regulatory approval, according to the clearing house DTCC.
Speculation Boosts Bitcoin Rally
Speculation that BlackRock or other pending bitcoin ETF applicants would succeed has fueled a significant rally in bitcoin, marking its largest two-day gain in seven months.
Traders Notice BlackRock’s ETF on DTCC List
Traders noticed BlackRock’s proposed ETF on the list published by DTCC, a post-trade settlement house that processed a staggering $2.5 quadrillion in trades across various asset classes in 2022.
DTCC Clarifies the List’s Purpose
DTCC clarified that the list is its eligibility file, which includes both active and potential ETFs. BlackRock’s iShares Trust ETF was added in August as part of its preparation for the launch of a new ETF, following standard practice.
No Indication of Regulatory Outcome
The clearing house emphasized that appearing on the list does not suggest any regulatory approval or outcome for outstanding processes. A spokesperson for DTCC stated that it is merely a procedural step and not indicative of BlackRock’s ETF being approved.
BlackRock’s Response Awaited
BlackRock has not yet responded to requests for comments on the matter. Meanwhile, bitcoin reached an 18-month high of $35,198 on Tuesday and was trading at $33,802 in Asia on Wednesday.
SEC Approval Could Drive Demand
If the U.S. Securities and Exchange Commission (SEC) approves an ETF that holds bitcoin on behalf of fund investors, it is expected to ignite significant demand. This approval would enable cautious investors to access cryptocurrency through the stock market, ushering in a new wave of capital into the crypto sector.
SEC Declines to Comment
The SEC declined to provide any comments regarding the matter.
