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Bitcoin nears $35,000 on investor bets that BlackRock ETF nod is ‘imminent’

Bitcoin nears $35,000 on investor bets that BlackRock ETF nod is ‘imminent’
BlackRock listed its iShares Bitcoin Trust on the DTCC. Credit: HOLLIE ADAMS/POOL/EPA-EFE/Shutterstock
  • Bitcoin is up 12% in the last 24 hours.
  • BlackRock listed its iShares Bitcoin Trust on the DTCC, a normal step in its process.
  • Investors interpreted the development as positive, betting that an ETF launch is imminent, says Bernstein.

Happy Tuesday!

Investors are interpreting BlackRock’s latest filings as a sign that a Bitcoin spot exchange-traded fund will be launching imminently, Bernstein said in an email to clients this morning.

Let’s dive into it.

Bringing an ETF to market

Bitcoin rose 12% overnight in anticipation of the imminent launch of a spot Bitcoin exchange-traded fund, says Bernstein.

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On Monday, BlackRock listed its iShares Bitcoin Trust on the Depository Trust & Clearing Corporation, which provides settlement and clearing services to financial markets.

It’s not a particularly notable or surprising development — listing on the DTCC is “part of the process of bringing [an] ETF to market,” Bloomberg Intelligence ETF analyst Eric Balchunas tweeted on X.

Still, says Bernstein analyst Gautam Chhugani, “the market is interpreting it as the ETF is imminent pretty soon.”

BlackRock stated in a recent filing that it will seed its ETF in October, Balchunas pointed out — meaning that it will purchase a small amount of Bitcoin for its ETF.

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“The fact they [are] doing it and disclosing it shows another step in the process of launching,” said Balchunas.

ETFs offer investors an affordable and convenient way to bet on the performance of stocks, commodities, and cryptocurrencies. They also tend to be highly liquid.

Bernstein said in a report on Monday that the approval of a Bitcoin spot ETF will be a catalyst “for a new cycle” that will bring “legitimacy to liquid tokens.”

At the same time, they said a nod from the US Securities and Exchange Commission will make it “acceptable for institutional investors” to trade in these products.

On October 16, Bitcoin surged 10% following a false report that the SEC had approved BlackRock’s ETF application.

Crypto market movers

  • Bitcoin is at $34,500, up 12% in the last 24 hours.
  • Ethereum is trading for $1,830, up 9% in the same period of time.
  • Solana and Cardano have gained about 7% each.

What we’re reading

Tom Carreras is a Markets Correspondent at DL News. Got a tip? Reach out at tcarreras@dlnews.com