Key Takeaways -
- Bitcoin's price fell 3% after BlackRock's iBTC ETF ticker was removed from the DTCC list.
- $37 million in long liquidations were triggered in the crypto market within an hour of the news.
- SEC's potential involvement is speculated, adding a layer of regulatory complexity to Bitcoin ETFs.
Just as the crypto sector was riding high on the prospect of a new Bitcoin ETF, a sudden twist changed the game. BlackRock, a titan in the financial world, had its Bitcoin ETF ticker, iBTC, abruptly delisted from the Depository Trust and Clearing Corporation (DTCC). The immediate impact? A sharp 3% drop in Bitcoin's value.
Immediate Market Repercussions
Before this development, Bitcoin was holding steady at $34,527. But the moment the news about BlackRock's iBTC delisting broke, Bitcoin's price took a nosedive to $33,845 currently. This wasn't just a small market blip. CoinGlass data reveals that this price shift set off a chain reaction, causing a massive $37 million in long liquidations across the crypto market, all within a single hour.
James Seyffart, a respected Bloomberg analyst, wasn't just a spectator. He speculated that the U.S. Securities and Exchange Commission (SEC) could be a key player in this market shakeup. Seyffart was so certain that he took to X, suggesting the SEC made a call to BlackRock, influencing the decision.
Why DTCC Listing Matters
Getting listed on the DTCC is more than just ticking a box; it's often the final hurdle before an ETF begins trading. BlackRock's fleeting mention of the ETF on their site had previously ignited hopes for an imminent Bitcoin ETF, even catapulting Bitcoin's price to an annual peak of $35,000.
The SEC isn't merely a bystander; it's a key influencer in the crypto landscape. Currently, the SEC is scrutinizing Grayscale's Bitcoin ETF application. To add another layer to this intricate scenario, a public comment period for BlackRock and other Bitcoin ETF contenders is ongoing until November 8th, as highlighted by legal authority Joe Carlasare, adding fuel to the market's growing anticipation and uncertainty.