The Bitcoin (BTC) price dropped 3 percent within minutes on May 11th after the Depository Trust & Clearing Corporation (DTCC) released a list of Remove Symbols (RemSymb) which include the iShares Bitcoin Trust. The iShares Bitcoin Trust (ticker symbol “GBTC”) was added to the list of Remove Symbols, or “RemSymb” on the DTCC Clarity data reporting system, on May 11th. A representative from DTCC stated that the action was taken to facilitate the listing of a more representative financial instrument.
The removal of GBTC’s ticker shocked the crypto community as many speculated that the decision would have negative ramifications for the approval of the first Bitcoin-based exchange-traded fund. It has been nearly three years since the first Bitcoin exchange traded fund applications have been filed with the U.S. Securities and Exchange Commission, and while several entities have applied for exemptive status, none have yet been granted. It is unclear why DTCC decided to take the action of removing the ticker for GBTC, or how it will affect the approval process but it does add some potential complications that need to be considered by the securities regulator.
The development has again raised questions about the future of the first Bitcoin ETF in the United States. Speculations are that the decision could result in further delays as the SEC must assess the implications of the removal of GBTC’s ticker symbol. It is likely that it will be taken into account by the Securities and Exchange Commission as it considers whether or not to approve a Bitcoin ETF.