DTCC’s Delisting Of BlackRock’s iShares Bitcoin Trust ETF Deemed ‘Intentional’

The recent delisting and subsequent relisting of BlackRock’s iShares Bitcoin Trust exchange-traded fund (ETF) by the Depository Trust and Clearing Corporation (DTCC) has caused a stir in the cryptocurrency market. 

The sudden removal of the ETF from the DTCC’s listings on Tuesday, coupled with the temporary unavailability of the DTCC website, led to a significant drop in Bitcoin’s price. 

However, after being relisted, Bitcoin has resumed its bullish trajectory, trading at $34,600 to reclaim the $35,000 level.

Delisting Of BlackRock’s iShares Bitcoin Trust Sparks Controversy 

BlackRock’s proposed iShares Bitcoin Trust was added to the DTCC’s reference database on Monday with the IBTC ticker symbol. However, without any explanation, IBTC was abruptly removed from the DTCC’s listings on Tuesday. 

This unexpected development caused Bitcoin’s price to experience a volatile swing. The DTCC website was also temporarily inaccessible during this period but is now functioning normally.

However, what’s more concerning is that according to a DL news report, an insider with direct knowledge of the decision revealed that DTCC’s delisting of BlackRock’s iShares Bitcoin Trust ETF was “intentional.” 

Per the report, the purpose was to conduct “further research” due to the significant attention the ETF was receiving.

Nevertheless, the details of the investigation, its implications, and whether the decision came from the Securities and Exchange Commission (SEC), another agency, or was an internal decision remain unclear.

The DTCC declined to comment on the circumstances surrounding the temporary delisting but emphasized that appearing on the list does not indicate the outcome of any regulatory or approval processes. 

The clearinghouse stated that BlackRock’s pending ETF was added to the list in August as a potential transaction to be processed at an undetermined future date, subject to SEC approval.

BTC’s Rollercoaster Ride

The volatile nature of market sentiment surrounding potential Bitcoin spot ETF approvals was evident on October 16. 

As reported by Bitcoinist, BTC experienced a sharp 10% surge following an erroneous report suggesting that the SEC had approved BlackRock’s ETF application. Such instances highlight news and speculation’s significant impact on cryptocurrency prices.

DTCC’s delisting and subsequent relisting of BlackRock’s iShares Bitcoin Trust ETF have sparked controversy and caused market turmoil. As claimed by an insider, the intentional delisting has raised questions about the motivations behind the decision. 

While the DTCC remains tight-lipped about the specifics, it emphasizes that appearing on the list does not guarantee regulatory approval. 

As Bitcoin continues its upward trajectory, market participants will closely monitor developments regarding the ETF’s regulatory journey and its potential implications for the wider cryptocurrency market.

Currently, the largest cryptocurrency in the market is trading at $34,600, reclaiming its bullish momentum. In the past 24 hours, Bitcoin has achieved a profit margin of over 2%.

Featured image from Shutterstock, chart from TradingView.com