BlackRock’s iShares Bitcoin Trust (IBTC) made its way onto the coveted list of the Depository Trust & Clearing Corporation (DTCC), only to vanish from it a day later.
This occurrence sent ripples through the crypto market, shedding light on the tenuous thread on which the acceptance of crypto-related financial instruments hangs.
BlackRock’s iShares Bitcoin Trust Removed from DTCC List
On appearing on the DTCC list, BlackRock’s IBTC was welcomed with anticipation and excitement within the crypto community. The listing strongly indicated that United States federal regulators might be warming up to the idea of a spot Bitcoin ETF, a sentiment numerous market pundits echoed.
The DTCC, known for its stringent post-trade clearance, settlement, custody, and information services, is a reputable entity whose endorsement carries significant weight in the financial sector. This listing marked a monumental step towards bridging traditional finance. Hence, the price of Bitcoin hit $35,000 as speculation mounted.
Read more: How To Buy Bitcoin (BTC) and Everything You Need To Know
However, the euphoria was short-lived, as the IBTC appears to have been delisted from the DTCC’s roster a day later.
The crypto market, which is no stranger to volatility, reacted with a blend of disappointment and trepidation. The price of Bitcoin dipped 5.45%, reaching an intraday low of $33,240. Technical analyst Nebraskan Gooner warned that the selling pressure might accelerate and Bitcoin could “revisit” the $32,700 to $33,000 support area.
This roller-coaster of events underscores the regulatory uncertainty that continues to shroud the crypto market. The delisting fanned the flames of skepticism among conservative investors. Subsequently reigniting the debate on the readiness of the regulatory framework for crypto-based financial instruments.
While the exact repercussions on the market are still unfolding, the incident has left a bittersweet taste among traders. Trading data shows nearly $80 million in liquidations thus far.
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