BlackRock Spot Bitcoin ETF Gets Ticker; Crypto Funds Jump

Proposed ETF anointed IBTC, as iShares creates mechanism to seed fund with cash.

BlackRock Inc. pushed ahead with efforts to launch its proposed spot bitcoin ETF, including giving it a ticker symbol and creating a mechanism to capitalize the fund. 

Crypto exchange-traded funds surged on the news, and the price of bitcoin jumped to its highest since May, 2022. 

BlackRock’s proposed spot bitcoin ETF was added to the Depository Trust and Clearing Corp., or DTCC, which clears and settles trades in U.S. markets, and given an identifying number known as a CUSIP. It was also branded with a ticker: IBTC. 

Bitcoin futures ETFs along with crypto prices surged on expectations the Securities and Exchange Commission is in the final stages before approving a spot bitcoin fund. The $908 million ProShares Bitcoin Strategy ETF (BITO) was 7.3% higher in midday trading trading while the VanEck Bitcoin Strategy ETF (XBTF) gained 6.9%. 

“It remains a matter of when, not a matter of if,” Grayscale CEO Michael Sonnenshein said of the spot bitcoin approval process at an Oct. 23 event.  

BlackRock’s amended filing includes the seeding mechanism to fund the ETF.  

BlackRock Seeding Plan, Ticker for IBTC Spot Bitcoin ETF

Crypto-focused investment firm Grayscale Inc. also saw a spot bitcoin victory yesterday. The D.C. Circuit Court of appeals officially implemented its unanimous ruling favoring Grayscale over the SEC’s objections to converting the Grayscale Bitcoin Trust into an ETF. 

“The SEC has been actively engaging with all S-1 filing applicants, signaling a positive move towards application effectiveness,” said CoinShares Head of Research James Butterfill in a statement. “Several issuers are in the final stages of their applications.” 

While various firms have been vying for a spot bitcoin ETF for years, the SEC has only recently begun to meaningfully move the approval process along. For crypto investor hopefuls, the prospect of a way to invest in the currency through an ETF has never looked more likely.  

Bitcoin’s price movements have been sensitive to news about the spot ETF approval process. After a false report spread on Twitter Oct. 16 that the iShares ETF was approved, the price of Bitcoin spiked about 10% before coming back down once BlackRock confirmed the report was false. 

Contact Lucy Brewster at [email protected].