Home Bitcoin News Debunking the Hype: Why BlackRock’s Bitcoin ETF Listing Means Little for Crypto Enthusiasts

Debunking the Hype: Why BlackRock’s Bitcoin ETF Listing Means Little for Crypto Enthusiasts

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In the world of cryptocurrencies and investments, recent news about BlackRock’s Bitcoin ETF listing on DTCC stirred up excitement among crypto enthusiasts. Many believed it was a significant step towards the approval of spot Bitcoin ETFs in the United States. However, a renowned ETF expert has stepped forward to provide a reality check, suggesting that the DTCC listing may not be as significant as it seems.

Chief Executive Officer of Armada ETFs, Phil Bak, shared his skepticism on the importance of BlackRock’s iShares Bitcoin ETF listing on the Depository Trust & Clearing Corporation (DTCC). With years of experience in ETF launches and product development, Bak expressed a view that challenges the prevailing optimism. He emphasized that the DTCC’s listing of BlackRock’s Bitcoin ETF holds no direct bearing on whether the United States Securities and Exchange Commission (SEC) will approve Bitcoin ETFs.

“I spent six years managing new ETF launches for NYSE (2010-2016) and about 15 years in ETF product development and management. The DTCC thing means absolutely nothing. Nothing. Get offline and spend time with your loved ones,” Bak stated, urging investors to temper their expectations.

Bak’s unexpected statement has triggered a wave of reactions and discussions within the crypto community. It highlights the ongoing debate regarding the possibility of Bitcoin ETFs becoming a reality and the need for a deeper understanding of the ETF approval process.

When asked if he had witnessed situations where the DTCC listed a product and the US SEC denied approval, Bak responded by saying that the DTCC is not an official listing venue, and it’s the 19b4 approval by the SEC’s division of trading and markets that is required before an ETF can be launched.

“DTCC is not a listing venue. You’ve been misinformed. When you see the words ’19b4 approved,’ then you’ll know an ETF is near,” Bak emphasized.

He further clarified, “Tickers are not assigned by DTCC. Cusips are given by them to any issuer who fills out a form. None of this has anything to do with the people or processes involved in rejecting/approving a 19b4.”

This sobering perspective challenges the assumption that the DTCC’s listing is a direct precursor to SEC approval, leading to a more realistic assessment of the situation.

As a backdrop to this, the cryptocurrency market has seen fluctuations in recent days. The positive sentiment surrounding Bitcoin ETF approval by the SEC has influenced the uptick in Bitcoin’s price. Additionally, the listing of BlackRock’s spot Bitcoin ETF on DTCC added to the optimism. However, recent developments have raised questions about the significance of this listing.

Presently, new data has revealed that BlackRock’s Bitcoin ETF ticker has been removed from the DTCC’s site. The reasons for this unexpected change have not been fully disclosed. Still, it’s noteworthy that the listing has returned to the website with a change in the Create/Redeem status from “Y” to “N.”

This mysterious alteration further complicates the understanding of the ETF approval process and its connection to DTCC listings. It underscores the need for a comprehensive understanding of the intricate mechanisms that determine the fate of Bitcoin ETFs.

In conclusion, the news of BlackRock’s Bitcoin ETF listing on DTCC may have sparked excitement in the crypto community, but it’s essential to consider the insights of experts like Phil Bak. The process of ETF approval is complex, involving the SEC’s 19b4 approval and not the mere listing on the DTCC. While the listing’s removal and subsequent return add intrigue to the story, they do not provide a definitive answer regarding the future of Bitcoin ETFs. As the debate continues, investors are advised to approach the situation with a balanced perspective and to gain a deeper understanding of the intricacies of the financial market.

In a world driven by the promise of investment and the allure of new opportunities, a dose of realism is often necessary to navigate the complexities of the financial market. It’s not just about embracing the highs but also understanding the underlying mechanics that shape the world of investment and cryptocurrency.

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Pankaj K

Pankaj is a skilled engineer with a passion for cryptocurrencies and blockchain technology. With over five years of experience in digital marketing, Pankaj is also an avid investor and trader in the crypto sphere. As a devoted fan of the Klever ecosystem, he strongly advocates for its innovative solutions and user-friendly wallet, while continuing to appreciate the Cardano project. Like my work? Send a tip to: 0x4C6D67705aF449f0C0102D4C7C693ad4A64926e9

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