The Relisting of BlackRock's iShares Bitcoin Trust on DTCC: What It Means for Bitcoin's Price

Bombolo | Coin News and Media

In a surprising turn of events, BlackRock's iShares Bitcoin Trust has been relisted on the Depository Trust and Clearing Corporation (DTCC) following a brief delisting. The DTCC website, which experienced some downtime, is now back up and running smoothly. This sudden development has had a significant impact on Bitcoin's price, causing it to fluctuate wildly.

On Monday, BlackRock's proposed iShares Bitcoin Trust was included in the DTCC's reference database, complete with the IBTC ticker symbol. This move was seen as a positive step towards the mainstream adoption of cryptocurrencies, especially Bitcoin.

Also Read: Bitcoin's Potential Surge to $56,000: The BlackRock ETF Impact

The Unexpected Delisting

However, earlier today, without any clear explanation, IBTC was abruptly removed from the DTCC's listings. This abrupt change sent shockwaves through the cryptocurrency market, leading to a sharp increase in Bitcoin's price to over $35,000, only to see it plummet to under $34,000 shortly afterward.

With the relisting of the iShares Bitcoin Trust, it is expected that Bitcoin will gradually regain its value and head back towards the $35,000 mark as we enter Wednesday.

Hope for Spot Bitcoin ETFs

Many asset managers have been eagerly waiting for the approval of spot Bitcoin ETFs, and BlackRock is among them. Despite the recent delisting hiccup, the Securities and Exchange Commission (SEC) appears to be more receptive to such investment products, having recently dropped its lawsuit against Ripple XRP executives. This positive development suggests that asset managers are on the right track regarding the future of Spot Bitcoin ETF applications.

Also Read: The Anticipation and Reality of BlackRock's Bitcoin ETF Application

SEC Chair's Perspective

SEC Chair Gensler has voiced the SEC's commitment to reviewing applications for Bitcoin ETFs, which likely includes BlackRock's proposal. However, it's worth noting that the regulator also charged BlackRock with failing to disclose investments properly today. This move has added a level of uncertainty to the cryptocurrency market.

Cooling Speculation

The recent rally in Bitcoin's price was largely driven by speculation, but it now appears to be settling down. As a result, Bitcoin is currently trading at just above $33,900. This indicates that the cryptocurrency market is becoming more stable and less prone to sudden and extreme price fluctuations.

The relisting of BlackRock's iShares Bitcoin Trust on the DTCC is a positive sign for the future of cryptocurrencies. However, the cryptocurrency market remains subject to regulatory changes and market sentiment. Investors should keep a close eye on developments in the coming weeks.

Also Read: SEC's Final Verdict: Grayscale Spot Bitcoin ETF Application Untouched

FAQs

• 1. What caused the initial delisting of BlackRock's iShares Bitcoin Trust?

  The exact reason for the initial delisting remains unclear, as no official explanation was provided.

• 2. How did Bitcoin's price react to the delisting and relisting?

  Following the delisting, Bitcoin's price surged to over $35,000 but quickly dropped to under $34,000. With the relisting, it is expected to recover gradually.

• 3. What is the significance of the SEC's stance on Spot Bitcoin ETFs?

  The SEC's willingness to review applications for Spot Bitcoin ETFs indicates a growing acceptance of cryptocurrency-related investment products.

• 4. Why did the recent rally in Bitcoin's price cool down?

  The rally was largely fueled by speculation, and as this speculation settles, Bitcoin's price is stabilizing.