Cryptocurrency Prices Volatile as BlackRock's BTC Spot ETF Application Impacts Market

In recent days, the

cryptocurrency

market has experienced significant price surges in major cryptocurrencies like BTC and ETH due to the developments related to a BTC spot ETF. For more insights into the impact of a BTC spot ETF on the industry, you can refer to the previous article:

https://www.wikibit.com/en/202310245374947698.html

Yesterday, due to the removal and re-addition of registration information for the iShares Bitcoin Trust (IBTC) by BlackRock on the DTCC page, several tokens experienced significant short-term fluctuations, leading to a large number of contract liquidations.

BlackRock's iShares Bitcoin Trust (IBTC) Removed from DTCC Page

Upon inspection, the iShares Bitcoin Trust (IBTC) by BlackRock has been removed from the DTCC page. Bloomberg ETF analyst James Seyffart speculates that BlackRock may have received a notice from the SEC. Cryptocurrency industry expert Gabor Gurbacs explains that for issuers, it's clear that some things can be completed in advance (but perhaps shouldn't be). In this case, proactively verifying with regulatory agencies would have been a more cautious approach.

As the news spread, BTC briefly dropped below 33,400 USDT before rebounding, and ETH briefly fell below 1,800 USDT.

DTCC Website Relists BlackRock's IBTC with Modified “Creation/Redemption” Type

A few hours later, upon verification, the DTCC website has relisted the iShares Bitcoin Trust (IBTC) by BlackRock. However, in the “Create/Redeem” category, it has changed from “Y” to “N”. It's worth noting that “Y” signifies that shares can be created and redeemed actively, while “N” indicates that the ETF does not allow active creation or redemption of shares.

According to Reuters, a spokesperson for the Depository Trust & Clearing Corporation (DTCC) mentioned that BlackRock's iShares Bitcoin Trust ETF was added to DTCC's eligibility documentation in August. However, this is a “standard process” in preparation for launching a new ETF, and it does not indicate that the ETF has received any regulatory approval or other approval outcomes.

Liquidations Exceed $270 Million Across the Market in the Last 12 Hours

The news of IBTC being taken offline and then back online on the DTCC website is seen as a factor that could impact the approval of a BTC spot ETF.

This news has led to multiple cryptocurrencies experiencing extreme price fluctuations within a short period, resulting in liquidations of over $270 million across the entire market in the past 12 hours.