BlackRock bitcoin ETF added to eligibility file, but regulatory approval uncertain

BlackRock’s proposed Bitcoin exchange-traded fund (ETF) made an appearance on a clearing-house eligibility list in August, a move that has stirred excitement in the crypto market. However, the Depository Trust & Clearing Corporation (DTCC), a post-trade settlement house, has clarified that this listing does not imply regulatory approval.

The inclusion of BlackRock’s iShares Bitcoin Trust ETF on the DTCC’s list raised eyebrows among traders, sparking a surge in Bitcoin prices. The DTCC, responsible for processing an astronomical $2.5 quadrillion in trades across various asset classes in 2022, downplayed the significance of this development.

According to a spokesperson for the clearing house, adding the ETF to the eligibility list was merely “standard practice…in preparation for the launch of a new ETF.” The spokesperson also emphasized that this listing does not offer any insight into the outcome of ongoing regulatory processes.

BlackRock, a global financial giant, has remained tight-lipped on the matter, declining to comment on the listing.

The crypto community is eagerly awaiting the U.S. Securities and Exchange Commission’s (SEC) decision regarding the approval of a Bitcoin ETF. If approved, such an ETF would provide investors, who have been cautious about cryptocurrencies, with a gateway to the digital asset market through traditional stock exchanges. This development is expected to drive a surge in capital investment into the cryptocurrency sector.

While the SEC has not released any official statements about the BlackRock listing, the market continues to speculate about a potential regulatory approval.

At 10:00 am GMT, Bitcoin was trading at $34,007.94, after briefly touching $35,000 the previous day.