Hopes for an imminent Bitcoin ETF approval took a hit as the Depository Trust and Clearing Corporation (DTCC) removed BlackRock’s Bitcoin ETF, iBTC, from its ETF list shortly after its addition on Monday. The abrupt removal resulted in a 3% drop in Bitcoin’s price, sliding from $34,527 to $33,432 within just 30 minutes of the discovery, media reports said.
The market reaction to the removal was swift, with approximately $37 million in long liquidations across the crypto market recorded within the past hour, as reported by CoinGlass. Bloomberg analyst James Seyffart speculated on Twitter that the Securities and Exchange Commission (SEC) might have played a role in the decision. “I’m guessing the SEC made a call to BlackRock,” Seyffart tweeted on Tuesday.
Listing on DTCC is a customary step for ETFs, usually occurring just before a fund starts trading. BlackRock’s initial mention of the ETF on its website had stirred excitement, pushing Bitcoin’s price to a yearly high of $35,000.
The SEC recently received an order to review Grayscale’s Bitcoin ETF application, heightening expectations for potential approval. However, the SEC’s public comment period for BlackRock and other Bitcoin ETF applicants is ongoing until November 8th, according to legal expert Joe Carlasare. The removal of BlackRock’s iBTC ETF from the DTCC list adds a layer of uncertainty to the timeline for Bitcoin ETF approvals, leaving the crypto community on edge as they await further developments.
