BlackRock’s spot Bitcoin ETF: Another rumor gets dispelled

• Rumors surrounding BlackRock’s BTC ETF have gained traction of late.
• However, DTCC clarified that it had added the ETF in August itself as “standard practice.” 

The investment management giant BlackRock became a victim of another misleading speculation.

Traders recently became very enthusiastic when they noticed that the Depository Trust & Clearing Corporation (DTCC) had listed BlackRock’s iShares spot Bitcoin [BTC] exchange-traded fund (ETF) on its website.

Eric Balchunas, ETF analyst at Bloomberg, also shared the news on X (formerly Twitter). The Bitcoin ETF’s ticker will be IBTC, he said.

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

It led to speculations in the crypto market that the US Securities and Exchange Commission (SEC) was soon going to approve BlackRock’s offering.

Reuters dispels rumor

But it turns out the ETF had been on the DTCC website since August, as per a recent Reuters report.

The report stated the Bitcoin ETF was added to a clearing-house eligibility file of DTCC in August itself. DTCC had added it as a “standard practice” for potential ETFs.

The reported cited a DTCC spokesperson’s comment on the matter, saying,

“Appearing on the list is not indicative of an outcome for any outstanding regulatory or other approval processes.”

Getting a ticker symbol and a unique ID code known as a CUSIP is a standard part of the prep work for any proposed ETF. It doesn’t mean the offering has been approved for trading.

Not the first misleading speculation this month

This is the second time in October that misleading speculations around BlackRock’s Bitcoin ETF gained significant traction.

A leading crypto-focused news publication posted an erroneous tweet on 16 October that the SEC had approved iShares spot Bitcoin ETF. The publication apologized for the mistake later.

Both of these speculations led to market frenzy that soon died down when the dust got settled.

BlackRock to pay a $2.5 million penalty in another case

Meanwhile, BlackRock got embroiled in another matter as the SEC charged it with “failing to accurately describe investments” in the entertainment industry. The asset manager agreed to a $2.5 million penalty.