Title: BlackRock’s Bitcoin ETF Listing and Removal Creates Crypto Market Volatility
Introduction:
Impulsive trading in crypto markets has once again been evident with the recent price fluctuations in Bitcoin (BTC) over the past two days. The sharp movements in value were triggered by the addition, and subsequent removal, of BlackRock’s proposed ticker for its spot bitcoin ETF on the Depository Trust & Clearing Corp.’s (DTCC) website.
DTCC Clarifies BlackRock ETF Listing:
DTCC spokesperson confirmed in an email to CoinDesk that BlackRock’s ETF had been on the website since August. However, the inclusion of an ETF on the page does not indicate anything about its regulatory approval, according to DTCC. It is merely a part of the preparatory process, including securing a ticker symbol and unique ID code known as a CUSIP, prior to seeking approval from the U.S. Securities and Exchange Commission (SEC).
Crypto Traders Misinterpret DTCC’s Moves:
Crypto traders viewed BlackRock’s ETF listing on the DTCC website as a positive sign that the regulatory approval was imminent. This sentiment caused Bitcoin’s price to surge above the $35,000 mark on Monday. However, the excitement was short-lived when the ETF vanished from the site, leading to a subsequent slump in Bitcoin’s value.
DTCC’s Standard Preparatory Practice:
The spokesperson clarified that DTCC routinely adds securities to the NSCC security eligibility file, as part of the preparation for the launch of a new ETF in the market. While the temporary inclusion of BlackRock’s ETF may have misled traders, it does not reflect the SEC’s decision or provide any insights into the timing of regulatory approval.
Bitcoin Fluctuations Continue:
Following the disappearance of BlackRock’s ETF listings on the DTCC website, Bitcoin experienced a decline in value. However, by the end of the day, the ETF listing was reinstated, once again leading to fluctuations in Bitcoin’s price.
Conclusion:
The crypto market’s impulsive tendencies were evident as the listing and removal of BlackRock’s proposed ticker for its bitcoin ETF on the DTCC website caused significant volatility in Bitcoin’s value. While traders misinterpreted the listing as an indication of impending approval, DTCC clarified that it is solely part of the preparatory process. As crypto enthusiasts eagerly await further updates from the SEC, the market remains susceptible to sudden swings triggered by speculative news and events.