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DTCC manipulating the market by repeatedly adding and removing BlackRock's Bitcoin spot ETF?

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In response to market accusations, DTCC has also issued a relevant response and added BlackRock's "IBTC" to the qualified file in August, which is a standard practice.

Author: Lüdong Xiaogong, BlockBeats

Yesterday, Bloomberg ETF analyst Eric Balchunas discovered that iShares, a subsidiary of asset management giant BlackRock, has listed its Bitcoin Trust on DTCC (Depository Trust & Clearing Corporation). The stock code will be "IBTC".

DTCC is the central depository and settlement hub for stocks, bonds, and asset securities in the United States. It is responsible for providing settlement and delivery services for eight major exchanges, including the New York Stock Exchange, NASDAQ, American Stock Exchange, and Chicago Stock Exchange. Its integrated settlement and delivery operations, along with centralized custody, have become the mainstream trend in the development of international securities market settlement and custody systems.

In the market's view, this is part of the process of introducing spot Bitcoin ETFs to the market. Combined with other news from yesterday, these are absolutely bullish. Therefore, Bitcoin has been rising all the way, reaching a new high of 35,000 in 18 months, leading the entire crypto market upward.

However, after more than ten hours, observant netizens discovered that the official website of DTCC seemed to have undergone some changes.

BlackRock "IBTC" has disappeared from the list updated by DTCC today. In response, Bloomberg ETF analyst Eric Balchunas expressed his opinion, "I'm not completely surprised, my guess is that they were told to wait until a few days before the implementation date instead of weeks or months before announcing it. As I said yesterday, it's really surprising to see it there now."

Just over ten minutes after the deleted message began to ferment, another netizen claimed that the DTCC official website had added it back. At that time, BlockBeats verified the official website but did not find this, as the DTCC official website had already crashed and the webpage was closed.

Within 1 hour of this incident, the entire cryptocurrency market experienced a liquidation of 47.51 million US dollars, with long positions liquidated at 41.36 million US dollars and short positions liquidated at 6.14 million US dollars. The community was in an uproar, believing that DTCC was manipulating the market, just like the fake news from Cointelegraph last week claiming the approval of a Bitcoin ETF by BlackRock.

After a night's sleep, the Asian market woke up to find that the DTCC website was accessible. The latest data shows that the iShares Bitcoin Spot ETF, a subsidiary of asset management giant BlackRock, is now listed on the DTCC (Depository Trust & Clearing Corporation) website. However, in the "Create/Redeem" section, it has changed from "Y" to "N".

Source: DTCC Official Website

BlockBeats Note: If "N" is displayed for Create/Redeem, it means that the ETF currently does not allow "creation and redemption" operations. Typically, this "creation and redemption" mechanism allows large investors to exchange baskets of stocks directly with ETF providers to ensure that the difference between the market price of the ETF and its net asset value (NAV) remains within a smaller range. However, if an ETF does not allow this operation, its market price may deviate significantly from its net asset value. Since the ETF has not yet been approved by the SEC, it cannot be traded on the public market, which may be one of the reasons why the ETF does not allow "creation and redemption" operations.

Regarding the market's accusations, DTCC has also responded. A spokesperson stated in a statement that BlackRock's iShares Bitcoin Trust ETF was added to the Qualified File of the Depository Trust & Clearing Corporation (DTCC) in August. The spokesperson stated: "DTCC adds securities to the NSCC Securities Qualified File in preparation for the launch of new ETFs in the market, which is standard practice. Being on the list does not indicate the result of any unfinished regulatory or other approval processes."

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