The announcement by the U.S-based Depository Trust & Clearing Corporation (DTCC) that it has removed the BlackRock-managed iShares Bitcoin Trust ticker symbol “BTC” from its list of tradeable securities sent shockwaves across the crypto industry. The investment product, which was the first-of-its-kind actively managed Bitcoin exchange-traded fund (ETF), was set to launch on May 7th, 2021.
The decision to pull the ticker symbol was seen as a major blow to the potential approval of a number of proposed Bitcoin ETFs that have been submitted to the U.S. Securities & Exchange Commission (SEC).According to a public statement, DTCC had determined that the ETF’s proposed construction “did not comply with the agency’s requirements for inclusion in its securities list.”
In immediate response to the news, Bitcoin’s price dropped 3% in under 5 minutes during European trading hours. This price dip was indicative of worries over the SEC’s likelihood to approve a Bitcoin ETF going forward, which many investors believe is needed for further institutional adoption of cryptocurrencies into mainstream finance.
Despite the bad news, it’s important to note that BlackRock and the SEC have not officially announced the denial of the Bitcoin ETF application. The SEC can still approve the fund if it passes further examinations, and it is likely that the iShares Bitcoin Trust will reapply its ticker in the near future. In the meantime, crypto enthusiasts must wait and see if the SEC will take action and greenlight a Bitcoin ETF in the near future.